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NGUS NOV 28 2018 363.05

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he actors may differ but for most countries the story remains the same. As external debt expands, economic growth usually contracts, and it is no different for Africa’s largest economy.

Nigeria’s economic growth has nosedived since the national debt began to swell again.

Since 2014, Nigeria’s national external debt has increased 127 percent from $9.7 billion in 2014 to $22.08 billion in June 2018.

Foreign debt was accumulated to fund the ever growing budget deficit in the country.

Rather than translate to faster economic growth, annual GDP growth declined from 6.22 percent in 2014 to 1.5 percent in June 2018. The period also included one economic recession in 2016 and less than 1 percent growth in 2017, thus, calling into question the benefit to the

expanding national debt on the economy.

“Our borrowing is not excessive. It goes through a rigorous

process. If the government did not borrow so much in the last three years, it would not have been able to function. The huge

borrowings sprang from the fall crude oil revenue and the attendant devaluation of the Continues on page 34

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NGUS AUG 21 2019 364.40

2019: Ambode’s chances still uncertain …GAC reconvenes Wednesday as councils stand with Sanwo-Olu JOSHUA BASSEY & INIOBONG IWOK

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L-R: Aishah Ahmad, deputy governor, financial system stability, Central Bank of Nigeria (CBN); Godwin Emefiele, governor, CBN, and Umaru Ibrahim, managing director/CEO, Nigeria Deposit Insurance Corporation (NDIC), at a media brief to announce the revocation of operating license and takeover of Skye Bank plc by Polaris Bank, in Lagos. Pic by Bashir Ibrahim Hassan

West Africa’s biggest mall risks closure on restricted access CHUKA UROKO

... footfall shrinks at $83m retail facility

hoppers coming from Epe, on the Lekki-Epe Express Road, and hoping to access the Novare Lekki Mall, said to be West Africa’s largest retail mall, now have to drive almost half a kilometre down the road before turning

back to access the mall. This is following the decision of the Lagos State Government to close the only access to the Mall for those coming to the mall from the Epe axis, as part of its light up Lagos project.

Before now, intending shop-

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Nigeria’s economic growth slides as sovereign debt balloons EMEKA UCHEAGA

fgn bonds

Treasury bills

pers could easily drive into the mall while coming from Epe. Now they have to drive for about half a kilometre before turning back for another kilometre to access the mall. The new more complicated process of accessing the mall has reduced footfalls

to the mall.

The 28,000 square metre mall with 22,000 gross lettable area was developed by Novare Real Estate Africa at an estimated cost of $83 million direct investment.

This investment, according the Continues on page 34

ncertainty still surrounds the second term bid of Governor Akinwunmi Ambode of Lagos, as he has so far failed to secure the support of a majority of party members who will be voting in the All Progressive Congress’ (APC) governorship primary election scheduled for September 29.

This is as more political groups within the party including chairmen of most of the 20 local government areas, 37 local council development areas (LCDAs) in the state, their vice chairmen as well as ward chairmen, continue mobilisastion for Jide Sanwo-Olu, managing director of Lagos State Property Development Corporation (LSPDC) seen as Ambode’s main challenger.

Continues on page 34

Inside If opposition unites Buhari will lose 2019 election, says Teneo P. 2

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CBN’s Skye Bank move will limit risk: Moody’s Endurance Okafor

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o o dy’s, the rating agency gave a thumbs up to the Central Bank of Nigeria (CBN) on its decision to takeover Nigeria’s eight largest lender, Skye bank, saying the license withdrawal will be credit positive for the industry.

Akintunde Majekodunmi, a Moody’s vice president and banking analyst said in a note to clients “taking away Skye Bank Plc’s license and transferring its assets and liabilities to Polaris Bank, a newly created bridge bank, will limit the threat of contagion to Nigeria’s banking system from the failure of a Systemically Important Bank; this shift is credit positive in that it will contain systemic risks for the Nigerian banking system as a whole.”

The CBN last week Friday announced the takeover of Skye Bank by a bridge bank called Polaris which has been licensed as a commercial bank and will now manage the bank’s assets.

The apex bank had stepped in to replace the chief executive officer, chairman and 10 other directors of Skye bank on July 4 2016, following the lender’s consistent breach of cash and liquidity ratios.

The CBN Governor, Godwin Emefiele and Umaru Ibrahim, managing director of NDIC disclosed that a N786 billion facility was injected into the bank by the Asset Management Corporation of Nigeria (AMCON).

“We wish to assure all depositors that under this arrangement, their deposits shall remain safe and that normal banking services shall continue in the new bank on Monday, September, 2018 to enable customers to transact their businesses seamlessly,” Emefiele said.

Depositors are unlikely to lose their funds as they are covered by the Nigeria Deposit Insurance Corporation (NDIC)

and the CBN’s cash injection can cover up for any run on the bank by customers.

The biggest losers however are equity investors who may have now lost about N10.6 billion, given that the bank had a market capitalisation of N10.6 billion at close of trading Friday.

Meanwhile, Moody’s had in May of 2018 released a note on Nigerian banks where the organisation said it has a stable outlook for the banking industry in Africa’s most populous nation.

“Our stable outlook for the Nigerian banking system reflects our expectation that foreign currency liquidity risks will continue to stabilise over the next 12 to 18 months, supported by recovering global oil prices and a more liberal foreign exchange market. However, we expect banks’ earnings to come under pressure and capital metrics to decline marginally over the same period. Additionally, asset quality will remain weak, but further deterioration in loan performance will be marginal as operating conditions slowly improve,” the New York-based firm had said in the report.

Moody’s had also forecast that the Nigerian economy would recover over the next few years but at a slow pace, as compiled from the banking system outlook.

“The economy will recover slowly. We forecast a continued recovery in real GDP growth over the next two years, up from 0.8 percent last year. Lending growth will rise to around 10 percent after a 15.4 percent contraction in 2017,” the report said.

Figures from the National Bureau of Statistics (NBS) however showed that the country recorded national output of N16.58trillion, representing a growth of 1.50 percent in the second quarter (Q2) of this year through to June 2018. This marked the second consecutive quarter of a decline in the pace of economic growth in Nigeria.

Nigeria’s Q3 internet subscription improves after sudden dip in Q2 David Ibidapo

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he year 2018 has recorded surprising trends in the internet subscription patterns in the Nigeria’s telecommunication industry.

Internet subscriptions in the country have experienced declines in the growth rate of subscription on the third month of Q1 and Q2.

BusinessDay analysis reveals that between February and March, internet subscription growth rate declined by 0.31 percent while between May and June, subscription growth declined by 0.34 percent.

According to data recently released by Nigerian Communication Commission (NCC), Nigeria internet subscriptions in August 2018 increased 14 percent year on year after 3 consecutive decline years on year between 2015 and 2017. Month on month, internet subscriptions increased by 0.92 percent from 103.6 million subscribers in July.

According to data provided by the NCC, internet subscription stood at 104.6 million, about 957,000 above subscription recorded in the previous quarter.

As indicated by McKinsey, “the figure implies density of Continues on page 34

Tuesday 25 September 2018

If opposition unites, Buhari will lose 2019 election – Teneo DIPO OLADEHINDE

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igeria’s President Muhammadu Buhar i could lose power in February’s election if the opposition manages to unite, according to New York-based analysis firm Teneo Intelligence.

A close governorship election over the weekend in the southwestern state of Osun, currently held by Buhari’s All Progressives Congress, bodes badly for the ruling party and signals its waning popularity, Teneo said in a note to clients.

While Nigeria’s electoral commission said there would be a rerun at seven polling stations on Sept. 27, the main opposition People’s Democratic Party is leading by a thin margin, based on results so far.

“There is already a clear message sent from Osun State: provided the PDP remains united, and the vote is reasonably free and fair, Buhari and his APC are likely to lose the general elections,” said Malte Liewerscheidt, an analyst at Teneo.

The southwest was key to Buhari’s victory in 2015, which marked the first democratic

transition of power from one party to another in Africa’s biggest oil producer.

The 75-year-old former general’s opponents accuse him of not doing enough to revive an economy still struggling after the 2014 crash in crude prices and to stop the spread of deadly communal clashes.

The PDP is to choose a presidential candidate during its national convention on Oct. 5 and 6. Several prominent politicians, including former Vice President Atiku Abubakar and Bukola Saraki, the head of the senate, are campaigning for the role.

L-R: Tajudeen Ahmed, general manager, BUA Group; Donald Duke, former governor of Cross River State, and Mike Asukwo, author/chief cartoonist, BusinessDay, during the presentation of Laughter in the Mirror, a collection of editorial cartoons by Mike Asukwo in Lagos.

Pic by Pius Okeosisi

Here’s why the number of bank borrowers reduced in 3 years BUNMI BAILEY

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igh rate of unemployment, a fragile economy and NonPerforming Loans (NPLs) may be the reasons why the number of people that borrow from deposit money banks reduced from 2015-2017 in Nigeria, economic experts told BusinessDay. According to the National Bureau of Statistics (NBS) 2018 second quarter (Q2) Banking credit report, the number of borrowers reduced by 30.4 percent to 2.3 million in 2017 from 3.0 million borrowers in 2015.

This number has seen a downward trend since 2015 till 2017.From 3 million in 2015, it dropped to 2.5 million in 2016, and in 2017, it fell to 2.3 million borrowers.

Ayo Akinwunmi, Head of Research, FSDH Merchant Bank said, “Banks look at the person who wants to borrow. If the person does not have huge cash flows depending on the amount the person intends to collect,

Explainer they will not lend the money to them. Unemployment is at 18.8 percent and it appears we do not understand what that means. It means that a lot of people are looking for jobs and cannot go to the banks to borrow because they do not have a source of repayment.”

“Businesses are not doing well because of the state of the economy so that is another reason why the number of people borrowing money is going down.

People that have the power to borrow three or five years ago do not have the power to borrow today,”Akinwunmi further added.

The unemployment rate in Nigeria has been on an increase since 2015 till 2017.It rose to 18.8 percent in Q3 2017 from 7.5 percent in Q1 2015 based on the NBS unemployment data Ayodeji Ebo, MD, Afrinvest Securities Limited also said that the capacity to borrow is based on existing jobs or salaries and the performance of business activities is attrib-

uted the decline to the current economic activities in the economy.

“If the rate of unemployment has been increasing and business activities have not been going well, there will be no capacity to leverage on borrowing in the first place. Borrowing for individuals is based on existing jobs or salaries. So it is right to say the higher number people of losing their jobs have also translated into reducing the ability and capacity to take on loans,” Ebo explained.

Nigeria NPLs has been on an increase since 2014.According to the World Bank NPLs ranking, it rose to 12.82 percent in 2016 from 2.96 percent in 2014.

“In 2016, there was economic recession and in 2017, the economy had a very slim recovery of 0.8 percent. In 2016, we also saw a major uptick in NPLs to about more than 14 percent of the banks’ loan portfolio.

So with such situation banks begun to derisk their balance sheet and could not increase their lending,” Johnson Chukwu, CEO, Cowry Asset Management Limited said.

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Minimum wage: Labour begins mobilisation for strike JOSHUA BASSEY

…tells Nigerians to stockpile foods

he organised labour on Monday began mobilisation ahead of its announced indefinite nationwide strike in protest against the delay by the Federal Government to commence the implementation of a new national minimum wage in the country.

The three labour centres: Nigeria Labour Congress (NLC), Trade Union Congress of Nigeria (TUC) and United Labour Congress (ULC) are jointly demanding the pay-

ment of N65,000 new national minimum wage.

A 30-man tripartite committee comprising government, labour and private sector representatives, set up by the Federal Government in November 2017, to deliberate and arrive at an agreeable figure, as minimum wage, is yet to reach a conclusion.

Chris Ngige, minister of labour and employment, recently announced the indefinite adjournment of the committee, saying it was to enable him meet with the Federal Government on the way for-

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FCTA partners DHQ Garrison, others on security JAMES KWEN

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he Federal Capital Territory Administration (FCTA) has pledged to work with the Defence Headquarters, DHQ Garrison and other security agencies in the territory to ensure effective maintenance of peace and security of lives and property.

Muhammad Bello, minister of the Federal Capital Territory, made this pledge while welcoming Olubunmi Irefin, the newly posted commander of DHQ Garrison, a brigadiergeneral, who paid him a courtesy call recently.

Bello acknowledged the support and hard work of officers and men of the DHQ Garrison, Abuja, over the years in their efforts to maintain law and order in the territory. He also acknowledged the contributions of other security agencies –both military and paramilitary outfits— in this direction.

The FCT Minister stated that, “We have our FCT Security Committee, where all of us meet regularly to review the security situation in the territory and share information. I am very pleased with the efforts all the agencies are making to ensure that peace and security reigns in the FCT”.

Bello, who congratulated Irefin for the new and important command position he has been assigned to, described the posting as an eloquent testimony of his meritorious services, sound academic background and command positions he has held both within Nigeria and outside the country, especially during international peace keeping operations.

The minister, while noting that the new commander has been adequately prepared for his present assignment, pledged to continue to be good host to the garrison and prayed that God would continue to propel the him to positions of higher responsibilities.

ward, a development which sparked protest from labour which accused the minister and government of engaging in delay tactics. Before adjournment of the committee, members had been working towards concluding negotiations and coming up with an agreeable figure, which implementation would have begum this September.

Addressing a press conference on the issue after their Central Working Committee (CWC) meeting in Lagos, Monday, Joe Ajaero, president of ULC, said there was no go-

ing back on the planned strike which begins this Wednesday.

The NLC, TUC and ULC had on September 12, 2018 jointly issued a 14-day ultimatum to the Federal Government to conclude negotiations on the new minimum wage or faced an industrial action.

“The Federal Government of Nigeria, through the federal minister of labour, has instead chosen to trivialise a life and death matter concerning Nigerian workers and masses and unfortunately chose to thread the path of name-calling.

“The Federal Government

of Nigeria is therefore still insistent on playing politics with the lives and living conditions of Nigerians especially Nigerian workers. Nigerians will remember that in May this year, we raised alarm when the minister of labour said categorically that there will be no new national minimum wage before the end of September this year.

This was however denied by the Federal Government but with this latest gambit, our worst fear concerning government’s motives over the national minimum wage has been confirmed.

“We therefore wish to reaf-

firm our commitment to pursue the attainment of our collective demand for N65,000 per month as the new national minimum wage for all Nigerian workers as harmonized by organised labour.

“We recommit to the 14day ultimatum issued to the Federal Government that as a result of this apparent disregard, we shall in conjunction with other labour centres working with civil society organisations across Nigeria embark on a nationwide strike if nothing is done to meet our demands on the expiration of this collective ultimatum in the next few days.

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COMMENT

Tuesday 25 September 2018

comment is free

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Is the 1999 constitution fake?

MAZI SAM OHUABUNWA OFR sam@starteamconsult.com

N

igeria is an intriguing nation - a 58- year adult nation that is still crawling like a toddler, while most of its mates are running on sure feet. Many people including political, traditional and religious leaders have expressed their bewilderment with Nigeria’s chronic inability to truly rise. Never mind that a tiny minority including some who earn N12 billion as annual dividend will argue differently that Nigeria is rising. Many ordinary folks in Nigeria have raised their hands in desperation as they find themselves daily pushed into poverty despite their best efforts. This is evidenced by the fact that Nigeria, the seventh most populous nation with a ‘tiny’ population of about 198 million people, has become the global poverty headquarters, beating India (with a population of over 1.2 billion) according to the Brookings Institution. Nigeria is said to have 87 million of its citizens in extreme

STRATEGY & POLICY

MA JOHNSON Johnson is an eclectic researcher, writer and columnist whose articles cover maritime, defence, technology and public policy issues and other areas of human interests. He is a member of the BusinessDay Editorial Advisory Board)

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his year, the International Maritime Organization (IMO) celebrates 70 years of improving safety at sea by developing international regulations that are followed by all shipping nations. As you read this piece, maritime nations worldwide are preparing to celebrate the World Maritime Day on 28 September 2018. The theme for this year’s World Maritime Day is: “IMO 70: Our Heritage- Better shipping for a Better Future”. Maritime heritage is a way to connect humanity to the ocean, not just those living along the coast. And understanding Nigeria’s maritime heritage helps us discover the history of our country.

Nigeria’s vibrant maritime heritage is reflected in buildings, customs, traditions, and folklore around the coasts. These aspects of our maritime heritage are however, not sufficiently documented

poverty as at today and according to Melinda Gates foundation, this number may grow to 152 million in 2050 and we say Nigeria is rising.

Yes Africa may be rising but not Nigeria and if anything, Nigeria is dragging Africa down!

What is the trouble with Nigeria? Chinua Achebe tried to answer this question in his book. Many other authors have posed this question and some have proffered answers.

Many have blamed the leadership, others the followership, and some both. Majority have rightly blamed corruption but we have failed to reach a national agreement on what constitutes corruption and how to identify corruption and how to prevent or punish corrupt acts. Even the Independent Corrupt Practices Commission (ICPC) seems to have a limited view of what constitutes a corrupt practice.

For example appointing a serving minister who is maintained by tax payers to serve as DG of a partisan campaign organization is a corrupt practice in my view. Indeed using official time or resources to serve private or partisan interests spells corrupt practice in my dictionary.

But those who claim to be fighting corruption are actually only fighting stealing money in Nigeria.

They seem to think that stealing or financial crimes constitute the total essence of corruption. I fully accept that stealing is a corrupt act but it is not all. In my opinion it is not the weightiest act of corruption.

Indeed for me, it is one aspect of corruption that is easiest to fight or

‘

General Abdulsalami Abubukar sat with a few of his friends and put up the 1999 constitution but ended up saying that it was done by” we the people of Nigeria”

’ even to prevent.

There are more insidious and damaging corrupt acts than straight forward thieving. Which was the point I believe President Goodluck Jonathan was trying to make, but his detractors refused and failed to understand his point, preferring to confuse issues in order to mock him. One of such corrupt acts which has become so pervasive in Nigeria is faking. Fake educational certificates, fake NYSC certificates, fake drugs, fake doctors, fake motor parts, fake identity cards, fake Naira notes, fake letters of employment, fake policemen, fake soldiers, fake election results, fake politicians, fake news etc. Something tells me that the problem of faking in Nigeria is perhaps at the root of our national malaise. Who knows how many of our political leaders in the executive and legislative arms of

government are in office with fake or forged certificates. If people can forge a mere NYSC exemption certificate which ordinarily is not difficult to get in the right way, imagine the number of our so called leaders at local, state and federal governments parading fake secondary and university certificates, diplomas and degrees. We cannot easily forget the story of the House of Representative speaker, Salisu Buhari, who came to power with a fake university degree.

That incident quickly opened a can of worms which threatened to cause a lot of damage to the 1999 class of our political leaders at all tiers of government. That was when we became aware of the difference between Chicago University and University of Chicago. Can we possibly estimate the damage such fake leaders have caused in our polity and economy?

In the private sector where we operate, the matter is worse. Everything is being faked. I once employed a staff who promised to be faithful, dutiful and honest. When I tried to check on his references, I found that the referees knew him by different first name from the one on his papers. Subsequently I discovered that this “honest” employee was impersonating his deceased elder brother. At another occasion I interviewed a candidate for a job. The guy showed Master’s degree certificate but could not string together one grammatically correct sentence. We all know that many Nigerians have been despatched to untimely death by fake drugs. Many have been involved in preventable auto accidents

because of fake brake pads or brake fluid. And then we say we are fighting corruption!

As I was completing this article, my friend - the one that was with me when we ran into the interminable traffic gridlock caused by the overloading of the Lagos ports to the utter neglect of the Eastern ports. Those who read this column regularly will remember that this my friend knows how to stoke trouble - asked me what I was writing about this week.

I announced to him that I was writing on a ‘nation of fakes’ He quickly jumped in and asserted that the real reason that there is so much faking in Nigeria is that the nation itself is fake. I remonstrated and asked why he would say such a thing. He looked at me and said “Mazi, it is only logical that a nation of fakes cannot but be a fake nation” I asked him for evidence. He referred to the preamble of the 1999 constitution.

He said that General Abdulsalami Abubukar sat with a few of his friends and put up the 1999 constitution but ended up saying that it was done by” we the people of Nigeria.” He concluded that this is master faking and said that if we wanted to change his assertion that Nigeria is a fake nation, then we should abandon the fake constitution and get the true people of Nigeria to draw up a true constitution for the good and peaceful governance of Nigeria. Truth is that I could not help but agree with my friend.

Send reactions to: comment@businessdayonline.com

The ocean: An exciting heritage to humanity or appreciated. The archeological and historical significance of these features, their cultural tourism value should be more widely promoted by preparing an inventory and better descriptions of maritime heritage buildings and structures associated with coastal life. These buildings and structures include harbors, ships, piers not administered by harbor boards or companies, encouraging and facilitating collections of folklore and stories associated with maritime vernacular structures and artifacts at state levels.

Coastal landscapes, beaches, and other amenities attract a large number of visitors from home and abroad and are therefore of immense value to tourism and coastal economies. Nevertheless, coastal heritage features are threatened by unfettered developments, and climate change. The planning management of coastal tourism warrants far greater priority and would benefit further from the following: Increased coordination among tourism development agencies, local authorities, and other agencies; evaluating the potential of maritime heritage as a recreational or tourism resource. For example, valuation of beaches and other recreational amenities, assessing the cultural and economic benefits of traditional and classic boat rallies, etcetera; and assessing the impacts of recreational and tourism activities on maritime heritage across the country.

Over the years, emphasis has al-

ways been on better shipping with the ultimate objective of creating a better future. So, efforts are made globally to ensure that modern shipping conforms to the highest standards, and it is the safest, cleanest and most efficient way to transport cargoes around the world.

Since the establishment of the IMO, the shipping industry has had a fairly good safety record. It is true that safer shipping demands a safety culture because maritime incidents are potentially catastrophic. The high rate of fatal injuries in shipping is caused by organizational accidents and maritime disasters. Marine accidents can be expensive in terms of human lives and the cost incurred from claims due to damage and pollution to the marine environment.

Marine accidents and unintended pollution at sea do not just occur but are products of several factors. Therefore, the sustenance of safety in the shipping industry requires human resources committed to observing safety procedures.

Maritime safety is concerned with the protection of ships, safety of lives and the environment, and this has been achieved through the promulgation of international laws.

Increased productivity will not engender safety at the ports unless port workers’ safety culture is deep-rooted in excellence. A ship is not automatically safe as one may think unless those working onboard at all levels would have to create safety through practice at all times. The priorities and preferences expressed by people through safety practice may be a

logical reproduction of what the ship owners find to be important. Maritime safety involves the aversion of human losses and injuries, the preservation of marine and coastal environment, and the protection of vessels and their cargoes.

The human factor is a complex multi-dimensional issue that affects maritime safety and marine environmental protection. It involves the entire spectrum of human activities performed by those operating in the maritime industry (ships’ crew, shore-based staff, regulatory bodies, recognized organizations, shipyards, legislators, and other relevant parties,). These are institutions and individuals that need to cooperate in order to address human element issues effectively. Data concerning marine accidents and incidents have always been generated and investigated by agencies appointed by governments in coastal states.

These are nations where accidents have occurred or by countries flagging such vessels.

An analysis of port accidents from the beginning of the twentieth century contained in the Major Incident Data Service revealed a rise in the number of incidents in the maritime domain. Historical analysis of accidents in seaports shows that human factors were responsible for 16 percent of all port accidents.

While the remaining 84 percent of port accidents were caused by other unstated error-producing conditions. One factor dominates the majority of maritime accidents and that is human error.

Many developed nations have taken steps to provide certain margins of safety in the marine industry through deliberate government policies. This helps to increase productivity and also enhance overall capacity. The use of sophisticated cranes and other devices to handle cargo coupled with an assembly of individuals with skills, competencies, and knowledge influences productivity and safety. The gifted human resource hypothesis is only valid in terms of productivity when most Nigerians operating in the nation’s marine industry are educated and possess skills necessary to enhance safety.

It is to be stressed, however, that safety margin is not free of cost as most developing nations consider it inappropriate and economically unprofitable to invest in such additional capacity when resources are scarce. Experience has shown that shipping companies within or outside Nigeria with high levels of safety report low accident figures, low replacement rates for crews, fewer crew absences, and high productivity. The best-in-class shipping companies are therefore the safest and most productive.Nigeria must ensure that shipping within our coastal waters conforms to the highest standards. And in line with best traditions, this writer wishes all seafarers fair wind and following seas as they celebrate the 2018 World Maritime Day.

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[#StopTheKillings] Kenya: Recent banking trends & outlook (2) RAFIQ RAJI “Dr Raji is chief economist at Macroafricaintel. He was previously an Africa Economist at Standard Chartered Bank, London, UK. (Twitter: @ DrRafiqRaji)”

Increasing foreign interest, hopes up for failed banks egardless, Kenyan banks are looking to spread their wings.

With Ethiopia beginning to open up on the back of reforms by youthful prime minister Abiy Ahmed, for instance, KCB plans to join forces with a bank there to exploit opportunities in a market with a population twice that of Kenya; according to Reuters in July. KCB could instead choose to expand its current representative office into a bigger standalone business, however. In another vein, Stanbic Bank has gone into partnership with the Industrial

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and Commercial Bank of China (ICBC) to offer credit card services to what could be as many as 60,000 Chinese visitors this year. Another foreign bank with designs on Kenya is JP Morgan, an American bank. Also, struggling Chase Bank, in receivership for a little over two years now, is getting $60 million in new money from SBM Holdings, a banking group in Mauritius. The new SBM Bank Kenya Ltd would only shave off 75 percent of Chase Bank’s assets and liabilities, however.

SBM is also invested in Fidelity Commercial Bank, which it bought in May 2017. Imperial Bank, another failed bank, may also be out of the doldrums soon, as Diamond Trust Bank (DTB) is set to acquire its “good” assets.

Dubai Bank, the third bank put in recievership in the wake of revelations about fraud, underreporting of loans, and myriad malpractices, was not so lucky; having been liquidated instead.

Furthermore, as part of a broader privatisation programme, which would see the sale of at least 23 parastatals, the Kenyan government plans to sell its controlling

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“Operating conditions are improving in Kenya, with real GDP growth forecast to rise to 5.6% this year as business confidence returns and agriculture recovers following last year’s drought.

[Thus] we expect credit growth to also rebound, but remain low due to tighter bank lending criteria”

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stakes in Consolidated Bank, National Bank and Development Bank to private investors.

NPLs to peak Non-performing loans have been ascendant, rising to 10.1 percent of gross loans in 2017 from 4.6 percent in 2012. In an early July research note, Moody’s, a rating agency, suggests NPLs would peak this year on the back of an improving economy and more successful loan recovery efforts.

Already at 11 percent of loans in March, it could come close to 12 percent before year-end if current constraining regulations and conditions do not improve much, though. Christos Theofilou, vice president and senior analyst at Moody’s, summarizes the situation as follows: “Operating conditions are improving in Kenya, with real GDP growth forecast to rise to 5.6% this year as business confidence returns and agriculture recovers following last year’s drought. [Thus] we expect credit growth to also rebound, but remain low due to tighter bank lending criteria.” Moody’s optimism is underpinned by im-

proving infrastructure, a budding oil and gas industry, a youthful population bulge, and fintech.

Still, it sees private sector credit growth remaining below 5 percent in 2018. A major reason is the constraining lending rate cap, which has inadvertently led to a greater shift by banks towards government securities, and a further crowding out of the private sector.

In any case, there is probably a conflict of interest for the government in regard of the interest rate cap law. While on the face of it, the authorities’ aim is to make credit cheaper and more accessible, a needy government seems to be the ultimate beneficiary; as banks empty their risk buckets in its favour. Little wonder, Kenyan banks remain quite profitable.

And if Moody’s view is on the money, they are likely to remain so; maintaining “an average return on assets close to 3.2%.”

• An edited version was published in the Q3 2018 issue of African Banker magazine Send reactions to: comment@businessdayonline.com

Lekki Free Trade Zone (FTZ) – fact or fiction?

CHINWE AJENE-SAGNA Chinwe Ajene-Sagna is an expert in the real estate industry with over 20 years of experience, including strategic advisory, asset/portfolio management and transactional services. She has a Harvard MBA, Dartmouth BA (H. Honors) and is an MRICS (chartered surveyor)

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Free Trade Zone (FTZ) is a specific class of Special Economic Zone (SEZ), which, in itself, is a designated area within a country where business and trade laws are different in order to promote investments. Businesses located within an SEZ or that are given SEZ status enjoy policies that their counterparts out-side of the SEZ zone do not.

These regulations include one or a combination of taxation, trading, customs and labour policies. The key objectives of SEZs are to encourage business, job creation, and trade especially foreign direct investments (FDI) by providing favourable regulations and statutory support.

The Free Trade Zone (FTZ)

is an SEZ in a geographic area where goods can be imported, stored, manufactured or reconfigured primarily for export purposes. They are set up with the objective of offering tax concessions and customs duty benefits to investors. Free Trade Zones as such are usually designated around major seaports or airports in order to support international traffic and the movement of goods, trade and investments.

S o m e o f t h e m o st w e l l known and successful Free Trade Zones in the world are located in Dubai. There are more than 30 Free Trade Zones in Dubai including Dubai Jebel Ali –the largest sea port FTZ, Dubai Multi Commodities Centre with over 7,000 registered companies and a retention rate of 94%, and the Dubai Financial Centre which contributes 12% to the GDP just to name a few. In Nigeria, there are over 14 Free Trade Zones including Calabar FTZ, Kano FTZ, ALS CON expert processing zone, Onne Oil and Gas FTZ, and Maigatari Border FTZ. One of the more recent entrants into this Free Trade Zone rally, is the Lekki Free Trade Zone.

The Lekki Free Trade Zone has been in existence since 2006 pursuant to the Nigeria Export Processing Zones Act (NEPZA). Comprising four key Quadrants totalling 16,500 hectares, the zone is the largest

in West Africa. The activities in the Lekki Free Trade Zone are in full swing, mostly driven by the undertakings of Dangote in the South East Quadrant. Dangote has three key projects on 3,000 hectares of land, namely a refinery (largest in Africa), a petrochemical plant, and a fertilizer plant due to be operational by 2019. Valued at over 12 billion USD, Dangote’s oil refinery is expected to create direct employment for 235,000 people.

Hence over 250,000 people are expected to reside, work or commute in and out of that Quadrant alone.

Right next to Dangote is a Chinese conglomerate ChinaAfrica Lekki Investment Ltd (C ALIL) which occupies the South West Quadrant. The welcome gate that most people associate with the Lekki FTZ is located here– on the way to LaCampagne Tropicana and other beach side destinations.

The Tolaram Group is also present with factories for TG Arla, (manufacturers of Dano Milk), Palm Oil Refinery (producers of power oil), Insignia Technology Prints and finally Kelloggs Production Company. Tolaram and Kelloggs jointly built and now own a 6 billion Naira factory. The Dangote and Chinese Quadrants are zoned for heavy industrial use and are strategically located next to the upcoming sea port – the deepest in West Africa. Tolaram is constructing the seaport with a 250m break-

water already completed.

The third and most recently activated Quadrant is the NorthWest Quadrant which abuts the Lekki/Epe express road. This Quadrant enjoys the location benefit of direct access to the expressway leading out of Lagos via Epe, as well as inside of Lagos via Lekki. In addition to its location, another key differentiator is the mixeduse nature of its zonal plans.

The North West and the North East Quadrants are zoned for light industrial and mixed use; allowing for residential, commercial, schools, hospitals etc. to be developed. Rendeavour, in partnership with Lagos State is developing 1,000 hectares within the NorthWest Quadrant of the zone. To put things in perspective 1,000 hectares is larger than all of Victoria Island!

Rendeavour is Africa’s largest urban land developer with seven projects across five countries. Similar to their projects in Tatu City Kenya or Appolonia Ghana, they are building a mixed-use urban city with industrial and commercial nodes, schools and hospitals, as well as affordable to mixed-income homes, amongst other products. Rendeavour is building a satellite city that will house and service the 250,000+ people (at a minimum) expected to live, work and play within the wider Lekki FTZ upon its completion.

The entire free zone is un-

der the auspice of the Lekki Worldwide Investments Limited (LWIL). The master developers within the four Quadrants are considered “Zone Managers” with quintessential personnel on site including NEPZA, Customs, Immigration and Police.

There are several tax advantages for Lekki FTZ designated businesses particularly those exporting goods and services outside of Nigeria. These include zero corporate income taxes, zero VAT, zero withholding tax etc. into perpetuity.

There are also plans by Development Finance Institutions and the government to expand the Lagos/Epe highway as well as to build the tolled E9 highway linking the seaport to Lekki/ Epe or to routes heading out of Lagos. Details regarding the incentives and transportation infrastructure plans will be explored in future articles.

What is clear is that the Lekki Free Trade Zone is set to revolutionize businesses and industries in Nigeria in the very near term. It will lead to greater foreign direct investment by addressing much of the challenges new entrants into the Nigeria market face. It will also support the decongestion of the Apapa/ Tincan Island and expand the Lagos corridor to the greater benefits of the indigenes and of Nigeria as a whole – this is a fact!

Send reactions to: comment@businessdayonline.com

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Tuesday 25 September 2018

Nigeria’s dismal health statistics

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igeria likes to boast of its status as Africa’s biggest economy, but its health statistics indicate the country is not only far behind its peers and other smaller countries in Africa, but it shows, in a classic way, the callousness of its politicians and government officials who go abroad to treat even common ailments while abandoning the people they govern to die in decrepit hospitals that now serve more as morgues than places for accessing healthcare.

A 2014 World Health Organisation (WHO) report on healthcare delivery, which surveyed 200 countries, placed Nigeria at an abysmal 197th position, just ahead of Congo Democratic Republic, Central African Republic (CAR) and Myanmar. Its verdict was damning: “Nigeria lacks a serious approach to healthcare.”

In 2016, President Muhammadu Buhari promised to end the practice of spending the government’s hard-earned cash on treating officials overseas, especially when Nigeria had the expertise. But three months later, the president himself flew to the United Kingdom to treat a common ear infection, an action the then president of the NMA described as a “national shame” considering that Nigeria had more than 250 ear, nose and throat (ENT) specialists, as well as a national ear centre. Well, the

president has continued to frequent UK hospitals and last year, spent more time in the UK than in Nigeria, treating an undisclosed ailment.

Even the President’s wife and daughter have complained about the quality of healthcare available to them at the presidential villa. While the president’s daughter raised alarm that the Aso Rock Clinic, which is supposed to cater for the immediate health needs of the first family, ministers and presidential aides, Mrs Buhari said she was advised by her aides not to bother using the facility but go abroad for treatment if she feels unwell.

If the health facility at the seat of power in the country is that decrepit, what would one expect in other parts of the country? In February, Nigeria was ranked 187 out of 191 countries in the world in assessing the level of compliance with the Universal Health Coverage (UHC), as very few of the populace is health insured, whereas even government provision for health is almost negligible.

Available figures show that Nigeria’s budgetary allocation to the health sector in 2018 was a mere N340.45 billion (less than $1 billion), representing only 3.9 percent of the budget. On a per capita basis, N1,800 ($5) is what the 2018 budget provides for the health of each of Nigeria’s 190 million citizens. This is completely dwarfed

by South Africa which proposed a health budget of R205.446 billion ($17.1 billion) in 2018, represents

$299 per head when compared to its population of 57million. Yet, Nigeria supposedly holds the title of the continent’s largest economy.

According to the World Health Organisation, Maternal mortality rate in Nigeria is 814, per 100,000 live births only outperforming Chad with 856, Central African Republic; 882, and Sierra Leone; 1360. War torn countries like Somalia and Democratic Republic of Congo even outperformed Nigeria.

Also, while Botswana and Mauritius have the proportion of births attended by skilled health personnel as 100 percent, Nigeria is again down the pyramid with 35 percent, competing with countries like Eritrea, Ethiopia, South Sudan, and Chad.

The statistics get worse, for every 1000 births in Nigeria, 108 infants (and children) die before the age of five, and again, the country sits comfortably close to the bottom of the ladder in Africa.

Data from WHO world health statistics 2017 further shows that over 72 million Nigerians are at risk of malaria, with 380.8 at risk out of every 1000 Nigerians, whereas, malaria has ceased to be a health concern for many other countries.

Yet, Africa’s largest economy shares the three bottom slots on the continent with Burkina Faso and Mali.

The figures for cancer are even more mind-boggling. Nigeria has a cancer death ration of 4 in 5, one of the worst in the world. According to the WHO, over 100, 000 people

are diagnosed with cancer annually in Nigeria, and about 80, 000 die from the disease, amounting to 240 daily. Furthermore, cervical cancer, which is virtually 100 percent preventable, kills one Nigerian woman every hour while breast cancer kills 40 Nigerian women daily.

What is more, due to the terrible working conditions, Nigerian doctors have been deserting the country in droves in search for better working conditions in other countries. According to the Nigerian Medical Association, more than 40, 000 out of the 75,000 registered Nigerian doctors were practicing abroad while over 70 percent of those in the country were thinking of picking jobs outside.

BusinessDay research shows that an average of 12 Nigerian trained doctors register for practice in the UK every week.

While experts are calling for better working conditions and greater investments in medical training, the Minister of Health, Isaac Adewole, is on record saying Nigeria doesn’t have shortage of doctors and that it can’t even train all its doctors, advising some to take to tailoring, business and politics.

With such standoffish and inconsiderate posture, we do not need a soothsayer to tell us that Nigeria’s health statistics will continue to deteriorate while the government busies itself with the manufacture of alternative facts to look good before its teeming supporters.

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Tuesday 25 September 2018

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APCON to push for Code review to accommodate digital Ad regulation … Plans stakeholders forum on political communication ahead of 2019 elections Stories by Daniel Obi Media Business Editor

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dvertising Practitioners Council of Nigeria, APCON is waiting for re-constitution of its board to push for the review of APCON law, specially the Code to accommodate digital Ad monitoring and regulation into it.

The council’s new planned move is on background that digital Ad is gradually gaining, accounting for about 6 percent of Nigeria’s about N120 billion annual above the line Ad spend.

The gradual interest in digital is further informed

by Nigeria’s huge access to internet by mobile phone in the world at 81 percent which explains that digital should be a major part of marketing.

The acting CEO of APCON, Ijedi Iyoha told BusinessDay recently that the advertising apex regulatory body is already doing something internally on the monitoring of digital Ads but not on the larger scale.

“When we had a coun-

cil, there was a committee working on digital Ad monitory and regulation to develop administrative and legal framework to assist the enforcement on digital Ads. The dissolution stopped the committee’s work. It is a difficult challenge for us now but the only thing we do is look at the social media and those we know we write to them on any infringement. When we have a council, we will

push for the review of APCON law”, the CEO said.

On other functions APCON cannot perform well without a board, Iyoha said the issue of installing new fellows has not been done and there are so many people on the queue. Again, APCON has not held Advertising Day which is a big forum for all stakeholders in the advertising industry.

The day involves lecture by renowned practitioners and

awards. Thirdly, there are no disciplinary committees to sit on the cases of practitioners. “What we do in this instance is to write to the defaulting members”.

Buhari administration in July 2015 dissolved the board of APCON alongside other agencies and parastatals. Up till now, APCON which is regulating Nigeria’s Advertising industry is without a council.

The implication of this,

according to experts is that the industry is not moving the way it supposed to move.

There are some reforms that probably would have come on board by now and there are some that would have been enforced, but all these are not happening.

Meanwhile and in the spirit of moving the nation forward and forestalling the hate speech as experienced in 2015 elections, APCON plans to hold stakeholders forum on political communication ahead of the 2019 general elections on October 11, 2018 in Abuja.

A statement recently signed by the Acting Registrar/Chief Executive, Ijedi Iyoha, said that the forum themed ‘Ethical Advertising And Communication: A Tool For Enhancing Peace And Political Stability’ is organized in anticipation of commencement of campaigns for the 2019 general elections and aims at discussing critical issues around the management of electioneering campaign communication and to highlight the rules of engagement applicable to the development and deployment of such communication.

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Osinbajo, Ambode on guest list as CEO Facebook Africa speaks at Lolu Akinwunmi’s book launch

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he Vice President, Yemi Osinbajo, will on September 27, 2018 lead other eminent Nigerians and marketing professionals to attend the launching of a book by one of the leading lights in the Nigerian advertising and marketing communications industry and CEO Prima Garnet Group, Lolu Akinwunmi.

Scheduled to coincide with his 60th birthday anniversary, the launch of the book, titled; Skin for Skin: The Prima Garnet Story; will also herald the birthing of the Lolu Akinwunmi Family Foundation (LAFF), a platform being created by the family of the ace advertising practitioner to give back to society.

Also expected to be at the event, scheduled to take place at the Harbour Point, Wilmot

Osinbajo

Africa’s entertainment, media industry enters dynamic new wave of convergence - PwC …Nigeria’s CAGR anticipated at 21.5% in 2022 with revenue reaching US$9.9 billion same year

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frica’s entertainment and media industry has entered a dynamic new phase - a third wave of convergence.

The borders that once separated the entertainment and media (E&M), technology and telecommunications industries are blurring in the battle for the attention of the consumer in a world that is rapidly digitising says PwC in its E&E outlook 2018- 2022 African perspective. The report said that as the mobile device cements itself as the pre-eminent source of the E&M experience, the most disruptive, forward-thinking companies are striving to create an integrated ecosystem suited to this consumerdriven dynamic.

The Outlook, PwC said is a comprehensive source of

analyses and five-year forecasts of consumer and advertising spending across five countries (South Africa, Nigeria, Kenya, Ghana and Tanzania) and 14 segments: Internet, data consumption, television, cinema, video games, e-sports, virtual reality, newspaper publishing, magazine publishing, book publishing, business-tobusiness (b2b), music, out-ofhome (OOH) and radio.

Vicki Myburgh, Entertainment and Media Leader for PwC Southern Africa, says in statement: “It’s clear we’re in a rapidly evolving media ecosystem that’s experiencing Convergence 3.0. “In Convergence 3.0, the dynamics of competition are evolving while a cohort of ever-expanding super competitors and more focussed players strive to build relevance at the right scale.

And business models are being reinvented so all players can tap into new revenue streams, for example, targeting fans and connecting more effectively with customers to develop a membership mind-set.

“The pace of change isn’t going to let up anytime soon.

New and emerging technologies such as artificial intelligence and augmented reality will continue to redefine the battleground. In an era when

faith in many industries is at a historically low ebb and regulators are targeting media businesses’ use of data, the ability to build and sustain consumer trust is becoming a vital differentiator.”

South Africa’s E&M industry faced a challenging year in 2017 amidst economic and socio-political uncertainty.

Total E&M revenue rose at a comparatively low rate of 6.8% year-on-year to R129.2 billion.

A bounce-back in 2018 sees an anticipated 7.6% year-on-year growth, while the CAGR to 2022 is forecast at 6.5%.

Within this overall increase, the fastest revenue growth will be in the digitally driven segments.

Nigeria, the report saw a huge 25.5% rise in E&M revenue in 2017 to US$3.8 billion, although US$605 million of

this US$764 million rise was attributable to Internet access. A 21.5% CAGR rate is anticipated to 2022, with revenue reaching US$9.9 billion in that year.

Again, Internet access revenue will account for 89.6% of this absolute growth.

Kenya’s E&M industry saw 17% year-on-year growth in 2017, again propelled by growth in the Internet sector.

An 11.6% CAGR will take the country to US$2.9 billion in 2022, from US$1.7 billion in 2017. Outside of the Internet space, TV and video revenue dwarfs the other segments.

Ghana’s E&M industry has more than tripled in value since 2013. Total revenue reached US$752 million in 2017. It is forecast to surpass US$1 billion in 2019 and to total US$1.5 billion in 2022, increasing at a 14.2% CAGR.

Ambode

Road, Victoria Island, Lagos, is the Lagos State Governor, Akinwunmi Ambode who will be the Guest of Honour, while CEO, Facebook Africa, Nunu Ntshingila-Njeke will be the Guest Speaker.

According to a statement issued by the author, Lolu Akinwunmi, the book is a memoir of his professional career in Marketing Communications from 1982 when he was hired as a Trainee Executive by Lintas, Nigeria’s foremost indigenous advertising agency.

From Lintas, he had moved to Promoserve in 1988 as a Client Service and Media Director and served till 1991 when he established Prima Garnet.

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Concept Nova targets corporates with IoT solutions to boost productivity

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igeria’s indigenous information technology company, Concept Nova has unveiled a range of Internet of Things, IoT solutions targeted at boosting the productivity of corporate organisations in Nigeria.

The solutions include a Vehicle Tracking System, Delivery Management System, Fuel Control System and FleeTrak Fleet Management Application, FMA. Others are Route Management Solution, that allows delivery and service providers build routes, track drivers and stay connected with their fleet activities daily; the PoolAutomated Request, which helps organisations to have a customizable uber-like application to help with vehicle request despite location.

These solutions are all high-tech powered and geared towards giving organisations total control of their assets to achieve optimum utilization.

Speaking to journalists at the launch of the solutions, General Manager of Concept Nova, Itiekhao Ikpeminogena said the solutions were driven by the need to build a local solution that addresses the challenges of high operational cost for corporate organisations while helping them improve efficiency and productivity.

He said: “As an indigenous company, our focus is on our immediate environment. We wanted to use information technology to drive efficiency in operations to increase productivity for companies.

“More so, the Nigerian economy is suffering. And the manufacturing sector is not really doing well. So, we looked at designing solutions that would help the manufacturing sector, so that when they deploy it locally, they would be able to achieve efficiency and increase productivity.”

Continuing, he said: “Let’s take the fuel control system, for instance.

We did a case study. The cost for diesel consumption, repair and maintenance of generators, amounted to

about 40% of the expenses of typical organisations in Nigeria.

“Through our solution, you can reduce the cost of diesel alone by 50%. This means that if diesel consumption costs the company about 30 million naira per annum, we are then talking of saving up to 15 million naira. That is huge.”

Speaking on the Vehicle Tracking System, Concept Group’s Lead Brokers Analyst, Martina Amos explained that the vehicle tracking solution, called Tikon helps fleet managers track locations and status of their vehicles and drivers in real time.

The FleeTrak Fleet Management Application, on the other hand, has been completely re-

vamped. Fleet managers can now use the web-based application to provide seamless management of up to 5000 units of a fleet, including cars, trucks and boats. Another bespoke solution launched on Thursday is the Fuel Control System which helps fleet managers reclaim control of fuel consumption by their fleet. The solution deals a decisive blow to fuel pilfering, both in mobile and stationary tanks.

The Delivery Management Solution caters to supply chain managers who hitherto had to contend with incomplete inventory during shipment. The Delivery Management System helps keep track of goods delivery from where an order originates to the destination.

CSR: PAL Pensions unveils youth-focused CSR: Eat’n’Go brands take a stand campaign ‘NextU’ in universities on literacy for children

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n line with its positioning of creating value for Nigerians, PAL Pension has launched a youthfocused campaign tagged ‘NextU’ in 5 Nigerian universities.

‘NextU’ is the CSR initiative of PAL Pensions focused on providing knowledge and guidance for ‘Creating The Future’ to young people on career, investment and life choices.

The campaign was launched in universities of Lagos, Benin, Port Harcourt, Obafemi Awolowo University and Ahmadu Bello University.

Some speakers and panellists who came from various backgrounds representing; Financial Literacy, Investment, Employability, Career growth, Entrepreneurship and Art/ Creativity; gave the students’ tips on how to be successful in their career

and business, manage funds and invest wisely with small funds. The students were also thrilled by award winning musician Orezi, who has consistently proven himself through sheer determination and handwork, a quality that brings the ‘NextU’ idea to life.

Speaking to the students of the University of Lagos, the Managing Director, PAL Pensions, Morohunke Bammeke, in a statement said ‘the vision of PAL Pensions is to be the best PFA by creating value’. PAL Pensions is that company that will always add value to you. She further averred that making money is not enough, preserving and investing wisely is what makes one wealthy.

She encouraged the students to commit to lifelong learning to create sustainable success and charged them to go out and create the future!’

The event, targeted at young, social media savvy, forward-thinking students interested in not just career after graduation but also entrepreneurship was well attended by students in the participating institutions.

“PAL Pensions is always interested in ways to impact the society positively.” said Sunmisola MarkOkoma, Head, Brand Management and Corporate Communications.

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omino’s Pizza, Cold Stone Creamery and Pinkberry Gourmet Frozen yoghurt have taken a stand for literacy this new school season.

The brands in collaboration with the Slum2School organization are out to ensure a thousand children from slums in Nigeria are placed in schools this year.

“Eat’N’Go has proven itself to be a true sweetheart that not only serves mouthwatering treats but also a compassionate company out to make Nigeria a better place one cause at a time. Joining the cause of Quality Education for all children, the company is ready to start a fundraising, throw a party and do

zas, ice cream and frozen yoghurts to the underserved kids of Tarkwa Bay. More than 50 of the company’s employees joined in the 100 Slum2school volunteers and served more than a thousand kids. It was a day full of fun, children’s laughter and of course, delicious treats. Beyond putting smiles on children’s faces, it was also a very important day to grow relationship with the community and enrol children to the school programs.

Shedding more light on the brands’ plan for the literacy day; Amalia Sebakunzi, Marketing Director for Eat‘N’Go commented that “There is the formal aspect of signing up the kids but beyond this, we made

all within its reach to help kids go to school”, the management said in a statement.

During this year’s Literacy Day, held on 8th September 2018, Eat’N’Go joined Slum2school for a community outreach at Tarkwa Bay, bringing delicious treats: piz-

it a fun day for the kids with pizza, ice cream and yoghurt. It’s our own way of saying education is fun”.

Otto Orondaam, founder Slum2School added “this is part of our activities for the “a thousand dreams campaign” which we have been running for some weeks now.

Tuesday 25 September 2018

Frooty Happy Hour by Chivita launched in 100ml pouches

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hi Limited, maker of Happy Hour by Chivita Fruit Drink, has launched Frooty Happy Hour by Chivita. The new fruit drink which is available in 100ml pouches is touted as a healthy, refreshing, fruit flavoured drink with exciting variants that offer an instant shot of refreshment for consumers.

Retailing at a N25 price point, Frooty Happy Hour by Chivita is currently viewed as the most affordable product in the market. “It is a healthy beverage alternative to carbonated drinks as it offers more in natural fruity benefits as well as provides high quality refreshment for the mind and body”, the company said.

Along with its handy pack size which resonates with an upwardly mobile youthful consumer segment desirous of rejuvenating satisfaction anytime and anywhere, the company further said that Frooty Happy Hour

by Chivita further seeks to increase its appeal and create a connection with consumers with three intriguing variants of Orange, Pineapple and Red Berries.

AQC urges organisations on improved quality products, services

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he organisers of African Quality Congress 2018 has charged both local and international businesses within the country and Africa to imbibe the international quality standard procedure that would make Nigerian and African products and services compete at the international stage.

The quality congress which seeks quality of products and services produced in Nigeria as well as networking among the stakeholders will hold on September 28, 2018 in Lagos.

According to the convener, Desmond Esorougwe, African quality congress 2018, is set to be a day where issues concerning standards, regulations and self-regulation will be discussed by renowned experts on specific industry.

“It will be an informative and inspiring day of new idea, stimulating debate and renowned speakers, dedicated to driving forward the quality agenda and the congress will provide delegates with a greater understanding of how operational effectiveness and efficiency is vital to achieving organization success.”

He said in a statement that quality brings to mind terms such as inspection, process control, auditing, standards and ISO 9000.

Tuesday 25 September 2018

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COMPANIES & MARKETS

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‘Though stocks are down now, this may be the best time to cherry pick’

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Co m pa n y n e w s a n a ly s i s a n d i n s i g h t

Pension operators set to explore opportunities in micropensions Modestus Anaesoronye

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he executive management of Pension Fund Operators Association of Nigeria (PenoP) says its members are ready to explore opportunities in the new micropension scheme billed to take-off in January 2019.

Members of the executive team including Chinedu Ekeocha, chief executive officer of Diamod PFC and Wale Odutola, chief executive officer for ARM Pensions said PenOp in preparation for the take off of the micropension scheme has instituted two committees – Micropension Implementation committee and shared Services Committee.

They said both Committees were preparing and getting their members ready for the take-off of the scheme, which is expected to bring a major turnaround in the countries’ Contributory Pension Scheme.

Pension regulator, the National Pension Commission (PenCom) said it has received the approval of the Secretary to the Government of the Federation of the guideline, having put in place necessary infrastructure to implement the scheme.

The National Pension Commission’s (PenCom’s) has released the draft guidelines on micro pension scheme, bringing flexibility in eligibility for participation to enable many Nigerians in the informal sector benefit from old age protection, which the scheme promises to offer.

The draft guidelines for the extension of pension coverage in accordance with section 2(3) of the PRA 2014 (Micro Pension Plan) 2018, requires that stakeholders and concerned publics make their inputs that will enable the PenCom come up with the final guidelines for the scheme.

According to the document, persons not below 18 years of age with legitimate source of income shall be eligible for participation in the Micro Pension Plan under Section 2 (3) of the PRA 2014: Such persons must be self-employed persons that belong to a Trade, Profession or Business Association; self-employed persons with a business registration as a company, partnership or enterprise; employees operating in the informal sector who work with or without formal written employment contract; as well as other self-employed

L-R: Yann Cottart, CEO NigerStar 7; Olapeju Adenuga, Legal Counsel NigerStar 7; Engr. Simbi Wabote, Executive Secretary, NCDMB; Anwar Jarmakani, Jagal Group Executive Managing Director; Ladi Lawanson, Lagos State Commissioner for Transportation

individuals.

According to the guidelines, notwithstanding the above, persons from 15 years and below 18 years may also participate subject to the approval/consent of their guardians.

A unique feature of these guidelines is the flexibility it

offers, as every contributor have the right of his contributions splited into two, to comprise 25 percent for contingent withdrawals and 75 percent for retirement benefits.

Contributions under the Micro Pension Plan shall be managed as two separate funds

Entrepreneurs see opportunities for business owners in Nigeria’s weak economy CHUKA UROKO

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hough the outlook maybe discouraging and sometimes scary, there are huge opportunities for business owners and discerning investors to explore in Nigeria’s weak economy, entrepreneurs have advised.

The entrepreneurs, under the aegis of Entrepreneurs’ Organization (EO), a global thought leader in entrepreneurship, says business owners should look beyond the challenging economic climate in the country to be able to see the different aspects of the economy where opportunities exist.

A global thought leader on entrepreneurship with over 12,000 members in 54 countries, EO plays an integral role in businesses, industries and

the lives of leading entrepreneurs worldwide.

“Rather than worrying and complaining about the challenging times, this is the real time for entrepreneurs to come together and learn about the tools to weather the storm.

This is the time when things are really tough; it is also the time when opportunities show up for discerning investors to tap,” said Sunday Gbenjo, president of the Lagos chapter of EO. Gbenjo, who spoke at the organisation’s Lagos learning event which was an experience sharing forum that featured the President/CEO, Beloxxi Industries Limited, Obi Ezeude, explained that since its establishment in 1987, EO which is the world’s only peer-to-peer network exclusively for entrepreneurs, has been transforming lives of entrepreneurs who transform the world.

Beloxxi is an indigenous

biscuit producing company and, according to Ezeude, the company has grown on the strength of its vision, disclosing that he was able to transform the company from a humble beginning to a multi-million dollar empire within just a few years through his uncommon doggedness and by sticking, strictly, to core business values and trusting in God. “The problem in Nigeria is that you have a beautiful idea but nobody believes in you.

So, it’s between you and your God,” he noted, encouraging the entrepreneurs at the event not to give up on their dreams and visions, assuring, “nothing is impossible with discipline, doggedness and trust in God”.

Saidu Basharu, EO Lagos finance chair, urged members to learn from the business template of the Beloxxi boss.

“In EO, everything is possible; we like to be creative. But as a

member, you are not allowed to advise, rather, we share experience,” he said.

Anthony Okoye, the organisation’s learning chairman who is also the organisation’s immediate past president, explained that the learning event was held monthly for entrepreneurs to share their experiences. “In this edition, we were able to get a Nigerian entrepreneur who, through his innovation and doggedness, has been able to transform himself from zero to hero and it was quite inspiring for everybody,” Okoye said. “ If you have an idea, don’t give up on it; difficulties should not be a dead end but an opportunity to innovate; always plan for the future; maintain a culture of excellence and merit and always hire the right people, ” advised Dele Nedd, communications chair of the organization.

namely: Micro Pension Contingent Fund (MPCF) for the 25 percent contingent contributions and Micro Pension Retirement Benefits Fund (MPRBF) for the 75 percent retirement benefits contributions.

The participation of the informal sector in the Con-

tributory Pension Scheme as provided by Section 2(3) of the PRA 2014 is primarily to provide for retirement benefits. Withdrawals/accessing benefits shall be two types reflecting the flexibility incorporated in the treatment of the contributions.

Herbert Wigwe advocates gender equality

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ccess Bank group managing director, Herbert Wigwe has reiterated the Bank’s interest and commitment towards creating equal opportunity for its employees irrespective of their gender. He affirmed this while speaking at a session held at the Bank’s Head Office in Lagos to celebrate the fifth anniversary of the Nigeria Sustainability Banking Principle.

The session themed ‘Gender Equality in the Financial Service Sector’ had in attendance various players in the bankingindustry such as the Chairman, First Bank Nigeria Plc., IbukunAwosika; director, Capacity Building Central Bank of Nigeria, Chizoba Mojekwu; divisional head, Corporate Services, FCMB, Felicia Obozuwa amongst others.

Wigwewhile charging participants, stressed the importance of such crucial gatherings to nation building. “Many people fail to realize the immense value women add to organizations and I am always excited about conversations like this. I believe

nothing should be spared in our bid to place women where they truly deserve to be and ultimately create an all-inclusive and accommodating environmentfor everyone irrespective of their gender.” Hesaid.

Speaking at the event, chairman, First Bank Nigeria Plc.,IbukunAwosika stated that it is important to renew efforts towards promoting gender equality especially seeing its potential in the quest for nation building. According to her, the era of marginalization based on gender must be eradicated and every employee given a fair chance to prove their worth without unnecessary gender considerations.

Access Bank Bank has put in place measures to ensure that women are given the necessary support to excel without undermining the male employees.

These policies, which include the extended maternity leave, establishment of crèches and recreational facilities amongst other things, are testaments to the Bank’s interest towards the cause.

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‘Though stocks are down now, this may be the best time to cherry pick’ As the investment market tightens with equities trending downwards, only experts with eye on the tab can make good investments and achieve strong returns. Here Saheed Bashir, group head, Business Development, Meristem Group in this interview with Modestus Anaesoronye shares his thoughts on developments in the market, growth opportunities and his company’s propositions.

Continued From Wednesday 19 Sept. 2018

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s it stands, equities are riskier, but it now depends on who you are as an investor. I had a discussion with a senior broker the other day and he believed he cannot put money in the fixed income market because rates are currently not attractive. You can do equities as a value investor and cherry pick some stocks, but then, it depends on several factors.

The market is tough, you can see an influx of commercial papers in recent times, with Dangote, Access Bank, Lafarge and a couple of other blue-chip companies issuing commercial papers at a rate that is relatively above the money market rate so it gives them some level of comfort even though it is still the best in the worst situation. That is the best opportunity in the worst situation.People like us make investments on daily basis, we cannot give an excuse that the market is down and then abscond, because if I keep saying that the market is down, what that means is that there is no work for me to do. So even though the market is down, people with investable money like pension must also invest as well. Your Pension Fund Administrator (PFA) has money to invest and they must invest it daily, but they mustinvest wisely, given the investment objectives and constraints.

In the last few years, we have seen a lot of investment houses floating different mutual funds in the money market. Is there a reason for this?

Yes, they have seen an opportunity in it. We also came up with two mutual funds about two years ago. We have the Meristem Money Market Fund and Meristem Equity Fund. Others have come up with different funds because there are opportunities in the funds space. A mutual fund is a collective

investment scheme and it is for a certain category of the investing public usually for those investors that do not have the time or expertise to manage their investments.

PFAs can equally invest in mutual funds because a lot of opportunities exist there.

So, if you buy equities mutual fund, the fund mirrors equities, but if you buy fixed income mutual funds the fund also behaves like a fixed income. But of course, you are benefiting from a pool, as you have more bargaining power than one individual investing and you also get the benefits of having the funds managed by an experienced manager. So, the main drive is because those floating the funds believe there is a lot of money in circulation and they are not looking at the equities market, hence, they create products that can give them access to investable funds.

We are expecting about 9 IPOs between this year and the next. Do you think this is the right time for an IPO, with the elections just around the corner?

The Initial Public Offering (IPO) market is a primary market anyway. We equally have the secondary market where you buy existing securities. The Commercial Papers (CPs) as well are going to be traded on FMDQ and those CPs are primary offerings. Dangote Cement is floating a CP for the first time after it was listed. Lafarge also did CPs after their bonds because CPs looked more attractive because you can restructure your portfolio and use cheaper debts to finance your operations rather than using expensive ones.

On the IPO market, after we weathered the exchange rate fluctuation storm and we came out of the recession, the economic indicators have been looking better in terms of the inflation trending down, the Naira stabilizing against the Dollar, foreign reserve and oil prices are looking good as well as output which means we have more money. The market is also experiencing

Saheed Bashir

some stability until when we had the election periods come upon us. What makes companies come out for IPO, is a relatively stable and peaceful economy.

The capital market is a barometer for the economy, if the market is doing well, then you can say the economy too is fine. More IPOs tells you that the economy is on the right track. The MTN IPO has slowed and there are speculations in the market that it may not come up until next year and SEC has also debunked receiving an application from MTN. The chances for the MTN IPO are slim, and it tells you that the chances of others coming

out too is slim. We also have a couple of transactions we are working out with our clients in the primary offering market. Before now, the market seems right for IPOs, but as it stands now, it may not be too good for such offerings, until after elections.

The market is not looking too nice now because prices seem depressed, which some companies might want to take advantage of to restructure their balance sheet.

Does this have an effect on the Private Equity space?

So many things are tied to political situations not only in Nigeria but across the world.

Everyone wants to be sure of

We did it so differently and people applauded us for that and we could see the benefits of doing it differently in terms of branding and perception in the eyes of our clients

what the outcomes could be because the level of uncertainties and risk go up when there is an election. In this part of the world, governance is almost shut down and they tend to face electioneering squarely, which is what is most evident today and that affects the level of economic activities. All attention is on economic activities, but I have a strong conviction that post election will be good for the market. Nigeria was the best performing market in the world as at February this year because market returned about 45 percent from where it closed last year. That return is capital appreciation alone, without considering dividend earnings, which means the total is higher than that and Nigeria is one of the markets you can get such returns from.

Let’s look at Meristem Group again, what are the plans going into the future?

As I said in the beginning, our business approach has always been client focused. We are Meristem, as our name connotes growth and anywhere there is an

opportunity to grow to meet needs in the market we look at it. We started as a brokerage firm when we saw a gap in the service delivery of the brokerage industry and that was what gave birth to Meristem. We did it so differently and people applauded us for that and we could see the benefits of doing it differently in terms of branding and perception in the eyes of our clients.

We are a conglomerate in the financial services excluding commercial banking services or fund administration, pension and Insurance.

We look at every opportunity where we can add value to clients as we are a very young company and very desirous of growth. Our wealth management is still far away from our focus and we want to do it differently from what is currently operating in the overall industry in terms of creating value and meeting the needs of the clients.

Private equity is still coming up, although it is a lot better than it was before and awareness is getting better, but the Nigerian economy and financial services especially the capital market is also a work in progress.

Who could believe that it would be possible to directly trade securities from your bedroom and get contract notes on the spot?I can go to my trading room right away and trade shares as a broker at the comfort of my bedroom.

Out of over 190 million Nigerians only about 5 million have a CSCS account and that is not taking into consideration duplicated accounts, which means a lower figure could be arrived at if we discount that. Of the active accounts of about 3 million, not so many of them do transactions regularly, which shows that there is a wide gap in terms of services rendered. This is synonymous with the Nigerian economy and other economies in the frontier market, but opportunities abound, so it is just for us to think outside the box and try to harness those opportunities.

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COMPANIES & MARKETS Africa’s health challenges, investment opportunities under spotlight at UN General Assembly

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he United Nations Economic Commission for Africa (UNECA), in partnership with GBCHealth and the Aliko Dangote Foundation is bringing together African leaders and other high profile personalities to discuss the continent’s health challenges and opportunities for investment.

The partners have organized a meeting themed ‘Africa’s Health and Financing: Pathways to Economic Growth and Prosperity’ which will be held at the United Nations headquarters in New York this week at the sidelines of the UN General Assembly.

It will bring together a number of African leaders, CEOs and business leaders, philanthropists, as well as high level representatives of the African Union, United Nations, and the African Development Bank to discuss issues relating to health financing in Africa, and early messages from the report on “Healthcare and Economic Growth in Africa”.

Clearly, African business entreprenuers are waking up to the reality that good health is good business, and investing in health is both a business and social imperative There is no chance to fill the $33 billion gap to achieving Agenda 2063 and the SDGs without the private sector, but also the private sector changing to work on health.

By 2030, business opportunities in health and wellness sector will reach $1.8 trillion in current prices (Business and Sustainable Development Commission). Opportunities are primarily in risk pooling; and technological advances including remote patient monitoring and telehealth.

The African youth bulge represents a huge potential opportunity for business across the continent. Harnessing this potential into a positive force for development through investments in health, empowerment, education and employment is the greatest challenge of the next 15 years.

Overall, integrated health programing will support the development of resilient health systems allowing for a higher standard of preventative healthcare, improved surveillance to reduce the likeli-

hood of outbreaks spreading, and rapid response in case of emergency.

The event offers the opportunity to spotlight the private sector’s engagements and commitments in health during UNGA. It will also serve as an opportunity to consult and build support for a number of activities in advance of the African Business: Health Forum in early February 2019.

Among these will be a preview of summary findings and messages from the publication on the state of Africa’s health sector from a macro-economic perspective. Discussions on the findings shared and, feedback generated during the meeting will inform any revisions of the report.

The final report will be launched in early February 2019 at the AU Summit.

The Africa Business: Heath Forum 2019, will see the United Nations Economic Commission for Africa (ECA) in partnership with GBCHealth, the Aliko Dangote Foundation and the Private Sector Health Alliance of Nigeria collaborate to bring together a number of African leaders, CEOs and business leaders, philanthropists, as well as high-level representatives of the African Union, United Nations, and the African Development Bank to discuss issues relating to health and business in Africa.

The Africa Business: Heath Forum will launch the African Business Coalition for Health (ABCHealth). This Africa led initiative was announced at last year’s Bloomberg Global Business Forum by Aliko Dangote, the African business magnate.

A B C He a l t h i s a p a r tnership between the Aliko Dangote Foundation and GBCHealth. Since the announcement, the partners have worked together to develop the foundation for a regional platform to connect African business leaders and philanthropists to mobilize coordinated action on health.

There is a strong rationale for the private sector to play a role in shaping health markets in Africa. The continent currently has 400 companies with revenue of more than $1 billion per year, and these companies are growing faster, and are more profitable in gen-

eral, than their global peers.

Beyond these fast-moving regional leaders, small and growing businesses create 80 percent of the continent’s employment and are stoking the engines of growth.

Against this backdrop, there’s a new cadre of responsible business leaders and philanthropists who understand the value and promise of sustainable large-scale investments in African countries, and are poised to make an even bigger impact on the continent’s people and economies.

“The coalition can provide much-needed guidance to ensure activities and investments are driving results in areas where the private sector can have real impact, focusing on holistic and integrated solutions that cross borders.”

“It’s an ambitious and bold project,” said Mr. Dangote, “but the only way to move Africa forward is to take bold moves, to think big, dream big and do big things together – breaking down silos, working across borders and working across sectors – with government and with each other.”

United Nations Economic Commission for Africa has the mandate of promoting the economic and social development of its Member States, fostering intra-regional integration, and promoting international cooperation for Africa’s development.

GBCHealth, is committed to leveraging the full resources of the business community to meet today’s most pressing global health challenges, working together to make a healthier world for their employees, for the communities in which they work and for the world at large; Aliko Dangote Foundation has as its main objective to reduce the number of lives lost to malnutrition and diseases by combating severe Acute Malnutrition in children in Africa; ABCHealth, helps companies and their leadership contribute more directly to meeting national and regional health goals in the context of SDG Agenda 2030 and Africa Agenda 2063 — ultimately improving the standard of living, quality of life, and the overall health and wellbeing of all Africans.

Business Event

vice President, Yemi Osinbajo; Imo State Governor, Rochas Okorocha; and some traders, during the inauguration of TraderMoni, at Relief Market, Owerri...

L-R: Finance Chair,. Saidu Basharu, Anthony Okoye, Learning Chair and immediate past president, Integration Chair, Ayo Stuffman, President of the organization, Sunday Gbenjo, President/CEO, Beloxxi Industries Limited and guest speaker,. Obi Ezeude, Communications Chair, Dele Nedd, Global Student Entrepreneurs Awards, GSEA, Chair, Ayodele Aderinwale, , and Membership Chair, Seun Obasanjo at the Entrepreneurs Organization, EO Lagos Chapter Learning event held in Lagos.

L-R: Tolulope Aderemi, partner, Perchstone&Graeys; Abisoye Coker, managing director, KiakiaFX, and Olatunbosun Sanyaolu-Oyo, managing director, Turtle Wax Bureau De Change Limited, at the technical service agreement signing ceremony between KiakiaFX and Turtle Wax BDC in Lagos.

Pic by OlawaleAmoo.

L-R: head, not-for-profit unit, Sterling Bank Plc, Carla Sojinrin; representative of district 4, 2nd position, Ibrahim Hussein, representative of district 4, 1st position, Faruq Akinsemoye, representative of district 6, 3rd position, Issac Daniel in the sprint junior boy category, at the grand finale of the third edition of the school cycling challenge organised by the African Foundation, sponsored by Sterling Bank plc in Lagos.

Pic: sterling bank.

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‘Financial sector, better served if potentials of big data mining, AI are well harnessed’

Bayo Adekanmbi is the chief transformation officer at MTN Nigeria. He is also the convener of Data Science Nigeria, a non-profit initiative dedicated to promoting data science in solving Nigeria’s business and social developmental problems. In this interview with Jumoke Akiyode-Lawanson, he talks about mobile technology, the growing importance of data science/data analytics and artificial intelligence (AI) in the development of any economy. Excerpts.

How can we bridge the huge gap on data science, Artificial intelligence (AI) and machine learning in Nigeria to be on par with developed countries? he biggest opportunity to bridge the gap lies with people. There has to be a conscious effort made to sensitise people about the opportunities that exist in data science. It starts with stimulating interest in data by providing platforms for learning skills such as Math and programming – this will entail integrating an introduction to the STEM (Science, Technology, Engineering and Mathematics) subjects into the educational curriculum, which will also encourage an early start for young people. I strongly believe that the effort to bridging the skills gap should be community-driven with interactions and collaborations among private sector leaders, government officials and data scientists. But beyond knowledge, interest cannot be excluded – a solution-driven approach, where data sciences are used to solve social/ business problems, is likely to stir up this interest in people. This could help to galvanise a data science rev-

T

Bayo Adekanmbi

olution in the country, which holds the possibility of positioning Nigeria as the preferred outsourcing hub for data science solutions.

Big data is a major challenge for enterprises across all industries and also for the government, as they find it difficult to analyse and process available data to gain

meaningful ideas for proper planning and execution. How can this problem be solved?

I feel the major issue is the existing skills gap in data analytics. Companies leveraging big data have to educate their employees on the capabilities of the technology as it essentially has the capability to change the business model of the

company. These companies need to recognise that the big data field requires varying types of expertise ranging from data science to business analytics and data engineering. What you have to understand – and remember – is that the findings from data gathered is completely dependent on the quality of the data, the collection process and the domain knowledge of the expert users within the enterprise.

Therefore, companies have to adopt a comprehensive data lifecycle which will provide insights on the usefulness of each type of data being gathered and their relevant applications. It is also vital for companies to invest in data risk management processes. All these things combined will certainly go a long way in securing data, building resilience for the big data systems, as well as properly harmonising all the data collected to enable its realworld application.

What are some opportunities that Nigeria seeks to benefit from big data mining and analytics?

Big data mining provides a wide range of opportunities across various sectors in Nigeria. It will open

up new businesses and create a multiple chain of start-ups especially in Artificial Intelligence. I feel the financial sector will be better served by harnessing the capabilities of the technology, particularly in deepening financial inclusion through the use of alternative data to develop credit risk scoring for the unserved and underserved segments. Of course, MTN is already leading in this space, leveraging advanced analytics to offer bespoke and customised solutions to our customers. We recently unveiled our Customer Experience Solution, in partnership with Nokia. The data-driven platform provides a complete view of customer experience, device analytics, network experience and usage, and therefore helps us anticipate the problems customers might face even before they experience it. We are therefore well positioned to address customer problems ahead of time. The role of big data in intelligent and personalised health will be very huge where various data points are aggregated to design best medical intervention. It is a great world of us when data is applied in solving local problems.

Africa Fintech Summit to reflect on technologies transforming finance …Holds in Lagos for the first time JUMOKE AKIYODE LAWANSON

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frica’s premier financial technology event, the Africa Fintech Summit which holds biannually and gathers tech experts, disruptors, stakeholders and policy makers to discuss and reflect on technologies impacting the financial industry will be held for the first time in Lagos, Nigeria, in November 2018.

This event comes on the heels of the earlier edition in Washington D.C. which featured leading policy makers, c-suite business executives, start-ups, and investors.

The Summit, organised by Deda-

lus Global, gathers innovators, investors, policy makers and other key stakeholders in the Fintech sector to discuss technologies transforming finance on the continent, debate regulatory policies, compare best practices, and forge new ventures.

Speaking on the decision to bring the Summit to Lagos, Leland Rice, the chairman of the Summit said, “Lagos is an ideal host city; it’s an epicenter of Africa’s Fintech revolution and the driving force behind the continent’s entrepreneurial spirit. The successes of companies such as Paga, Flutterwave, Mines.io, and Paystack have strategically positioned Lagos as the destination of choice for investors.”

“The first edition of the Summit in D.C. was a launch pad for several milestone Fintech deals struck among its delegates in the months after the event. We plan to build on these successes in Lagos, with a focus on bringing innovators and policy makers together to move the needle on Fintech regulation and bringing founders and investors together to facilitate further capital raises,” Leland said.

The two-day event will feature investor missions from the United States, United Kingdom, and the United Arab Emirates. It is planned to be an Alpha Expo featuring the most exciting startups and entrepre-

neurs in Nigeria. It will feature a halfday blockchain master class and an awards ceremony.

Reacting to the decision to host the Summit in Lagos, Lanre Osibona, senior special assistant to the President on Technology said, “This reflects the progress Nigeria is making in the areas of technology and financial services. The event is very important as it comes at the heels of Yemi Osinbajo, the vice president’s trip to Silicon Valley to promote Nigeria’s tech sector. We look forward to collaborating with the organising committee and to a successful event in Lagos.”

In similar vein, Tayo Oviosu, the

founder of Paga —a payment company that recently raised $10 million in Series B2 funding — said that “the Africa Fintech Summit in Washington D.C. provided valuable insights into the Fintech space and connected me with key players in the industry. I look forward to the Lagos edition.”

Speakers lined up for the event include, Andrew S. Nevin; chief economist of PwC Nigeria, Eghosa Omoigui; managing general partner of EchoVC, Uzoma Dozie; CEO of Diamond Bank, Iyinoluwa Aboyeji; founder of Flutterwave and Shola Akinlade; CEO of PayStack which recently raised $8 million Series A funding.

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BDTECH

E-mail: jumoke.akiyode@businessdayonline.com

Nigeria can be part of global electronic health system - Danbatta Stories by JUMOKE AKIYODE-LAWANSON

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ith increased development in Nigeria’s Information Communication Technology (ICT) and telecommunication sectors and the country’s gradual move to digital revolution, Umar Garba Danbatta, executive vice chairman (EVC) of Nigeria Communications Commision (NCC) has expressed optimism that the country has the potential and will sooner rather than later join the league of nations where e-health thrives.

Danbatta, who hinged his positivity on the role that the NCC, as regulator of the industry is playing toward entrenching digital transformation in the country, called for the connecting of all data centers in the country to a central data center domiciled at the National Identity Management Commission (NIMC).

He spoke while receiving a delegation of the University of Abuja, Teaching Hospital, led

by Sam Jaja, its board chair-

L R; Ayuba Shuaibu, of Universal Service Provision Fund (USPF), Nicholas Baaunlang, chairman Medical Advisory Committee University of Abuja Teaching Hospital Abuja, Umar Garba Danbatta, executive vice chairman/CEO, Nigerian Communications Commission (NCC), Bissallah Ahmed Ekele, chief medical director, University of Abuja Teaching Hospital Abuja, Abubakar Yakuba, director of project NCC, during a courtesy visit to the NCC headquarters recently.

man, and Bisallah Ahmed Ekele, the chief medical director, who paid a courtesy call at the headquarters of the NCC in Abuja.

“We are moving gradually towards what I call the digital transformation of the country, and this, you can do stage by stage. A time will come when everything will be online. If you want the record of a patient referred to

you from a different hospital.

You just do it with a press of a button and you have the patient’s history.

“And a patient travelling abroad for medical reason may not have the need to carry the hard copy of his medical history with him.

These are all parts of the global e-health architecture that we hope to put in place in the not- too -distant fu-

ture,” Danbatta explained.

Speaking further, the EVC observed that ICT could be leveraged upon to ensure computerisation of records and fast-tracking diagnosis and treatment in the nation’s hospitals.

“Our intervention in university intercampus connectivity project has made distance a non-issue by providing you with high speed

9mobile excites customers with up to 30GB free data in new MiFi offer

and reliable high-speed connectivity that will facilitate communication between your campuses.

“And we see the university teaching hospital as an important component of this project. And then there’s a data center and facility that will enable you to capture the data of the most important things you are doing, including serving as a repository of student records, academic records, medical records and all kinds of records, which will be difficult to keep in hard copy form.

We decided that universities like University of Abuja will require data centers that will ensure a reliable source of keeping data, which is retrievable at the press of a button, Danbatta said.

Sam Jaja commended the EVC and the NCC for the significant interventions in the hospital.

Also speaking at the occasion, Ahmed Ekele, the CMD of the hospital, told the EVC that the NCC’s intervention was the first major assistance the medical institution received in its 25-year history.

Inlaks recognised as best Temenos Learning Community partner in Africa

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mbracing the core values of innovation and customer focus, Inlaks has been recognised as the best Temenos Learning Community (TLC) partner of 2018 in Africa for investing in digital training and development with well-coordinated training methodology in delivering value to numerous customers across the continent.

This endorsement was highlighted by Temenos at this year’s Temenos MEA (Middle East and Africa) sales and partner meeting in Dubai recently. Temenos specialises in enterprise software for banks and financial services.

Femi Adeoti, managing director and CEO of Inlaks, Africa operations, professed about what the testimonial connotes for Inlaks as the best Temenos Learning Community partner, “Through this, the company has delivered more value to numerous customers across Africa,” he said.

Adeoti explained that

the Temenos training and certification is delivered through Temenos Learning Community; as such, each member “will need to study online or attend classroom training courses and take the associated exams to earn the necessary credits needed to move to the next level of membership”.

Detailing the line of

Femi Adeoti, MD/CEO Inlaks

action for the course, he shared that the course catalogue is available in the Temenos learning community which provides details about each course and prerequisites needed accordingly. Course materials and examinations are both available on the designated online link for TLC.

Inlaks and Temenos as a result of excellent collaborative effort triumphed by securing the biggest deal in the history of Temenos in a Francophone country, Afriland Bank Limited, Cameroon. “This is a landmark deal since Temenos T24 replaces an entrenched core banking application (Sopra banking software)

in Francophone countries across Africa”, Adeoti added.

Inlaks is a leading system integrator in Sub-Saharan Africa and collaborates with leading original equipment manufacturers such as Temenos in the technology industry to provide world-class information technology solutions.

The company has a reputation as the foremost ICT and infrastructure solutions provider, helping customers effectively seize new market and service opportunities.

With an impressive customer base that includes six Central Banks in West Africa, 18 of the 24 banks in Nigeria and other major customers in the West African region, Inlaks has become the dominant Information Technology Company (ICT) in Africa.

Inlaks’ customers cut across various segments including banking, telecommunication, oil/gas, power, utilities and the distribution sectors of the economy.

I

n keeping with its commitment to continuously delight customers with innovative solutions that add value at no extra cost, 9mobile has introduced a new MiFi offer to the market offering customers 30 Gigabyte (30GB) free data plus bonus data for 1 year.

With the launch of the new MiFi offer, 9mobile also re-enforces its commitment to consistently provide faster and more affordable data services that enable existing and new customers to do more for less.

Adebisi Idowu, vp marketing, 9mobile, said the telco’s subscribers who purchase data devices in any of its experience centers are assured of high quality internet services, stating this is a promise that 9mobile will always deliver on.

“We are passionate about our customers; this is why we offer them true value for their money on 9mobile data plans, to deliver exceptional browsing experience online”, he said.

Idowu revealed that customers are assured of a 15GB sign up free data bonus instantly upon purchase of the new LTE/3G MiFi device. The customers also get another 15GB free data bonus if they purchase 7.1GB or higher data plans in the second month after service activation.

From the 3rd month, these customers get up to 100 percent bonus data for one year whenever they purchase 7.1GB or higher data plans on the 9mobile network.

According to 9mobile, its existing MiFi device customers who purchase 7.1GB or higher data plans will also enjoy up to 100 percent bonus data for one year “As a customer-centric network, we are very audacious in providing valueadding services to our subscribers. We also provide platforms that ensure positive customer experience both at the point of sale and even after sale. This is why we go the extra mile to reward our customers with amazing bonuses. In addition, we have ensured that 9mobile MiFi devices are built with durable materials,” Idowu said.

The 9mobile MiFi device can provide internet services for up to 10 devices and is portable.

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in association with

How Delta’s first biometric terminal in the U.S. will benefit air passengers Stories by IFEOMA OKEKE

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elta Air Lines, in partnership with U.S. Customs and Border Protection (CBP), Hartsfield-Jackson Atlanta International Airport (ATL) and the Transportation Security Administration (TSA), is launching the first biometric terminal in the United States at Maynard H. Jackson International Terminal (Terminal F) in Atlanta.

Beginning late this year, customers flying direct to an international destination have the option of using facial recognition technology from curb to gate, transforming the customer journey with a seamless travel experience through the airport.

This optional, end-to-end Delta Biometrics experience includes using facial recognition technology to check in at the self-service kiosks in the lobby, drop checked baggage at the counters in the lobby, serve as identification at the TSA checkpoint, board a flight at any gate in Terminal F and, go through CBP processing for international travelers arriving into the U.S.

For passengers traveling on partner airlines Aeromexico, Air FranceKLM or Virgin Atlantic Airways out of Terminal F are eligible to use this technology too — another benefit of Delta’s unmatched global network of partnerships.

“Launching the first biometric terminal in the U.S. at the world’s busiest airport means we’re bringing the future of flying to customers traveling around the globe,” Gil West, Delta’s COO said. “Customers have an expectation that experiences along their journey are easy and happen seamlessly — that’s what we’re aiming for by launching this technology across airport touch points.”

Delta employees’ input has been key to move facial recognition from testing to this full-scale launch — they have provided invaluable feedback on everything from the best camera angle for a successful scan to an added device enhancement that better facilitates face-to-face interactions with customers. Based on initial testing, the facial recognition option not only saves up to nine minutes per flight, but provides employees an opportunity to have more meaningful interactions with customers throughout the journey.

“This is the latest example of

Delta’s investment in, and partnership with, the world’s busiest and most efficient airport. We are looking forward to bringing the future of travel to life with Delta, CBP and TSA,” Balram Bheodari, interim general manager, Hartsfield-Jackson Atlanta International Airport said.

How it works Customers flying direct to an international destination from Atlanta’s Terminal F wanting to use this option simply enter their passport information when prompted during online check-in. If passengers forget to enter passport information in advance, this option will be available at the terminal after an initial passport scan and verification.

Passengers can click “Look” on the screen at the kiosk in the lobby, or approach the camera at the counter in the lobby, the TSA checkpoint or when boarding at the gate.

Travellers will breeze through once the green check mark flashes on the screen. Travellers will need to have their passports available and should always bring their passports when they travel internationally for use at other touch points during their trip. If customers do not want to participate, they just proceed normally, as they’ve always done, through the

airport.

“Delta and CBP have developed a strong partnership over the years, and share a common vision for enhancing security and the traveler experience,” Kevin McAleenan, CBP commissioner said. “Together with innovative partners like Delta, TSA and ATL, we are using technology to create a secure, efficient and simplified travel experience.”

Also at ATL Terminal F, customers can take advantage of industryleading Computed Tomography (CT) scanners at two automated screening lanes, which are being installed in partnership with the TSA and the airport. This means travelers won’t have to take out electronics from their bags at the TSA checkpoint, further enabling a smooth travel experience.

“The expansion of biometrics and facial recognition throughout the airport environment represents the next generation of security identification technology,” David Pekoske, TSA administrator said. “TSA is committed to working with great partners like Delta, ATL and CBP on developing and deploying new capabilities like these.”

The expansion of the facial recognition option with Delta Biometrics is a natural next step following CBP and Delta’s optional facial recognition

boarding tests at ATL, Detroit Metropolitan Airport and John F. Kennedy International Airport over the past several years.

In addition, Delta recently tested a self-service biometric bag drop at Minneapolis-Saint Paul International Airport for international customers.

Delta has also tested biometric boarding at Ronald Reagan Washington National Airport, and has launched optional biometric check-in for all domestic Delta Sky Clubs, facilitated by Delta Biometrics Powered by CLEAR. This launch leverages technology and software developed by NEC Corporation.

Over the past several years, Delta has led the industry on a number of customer solutions like RFID baggage handling, automatic check-in and bag tracking via the Fly Delta mobile app, a cross-industry alliance that will empower customers with seamless in-cabin connectivity experience, more efficient and high-tech automated screening lanes, and a groundbreaking app that helps Delta pilots avoid turbulence for a more comfortable flight. Delta was named one of Fast Company’s Most Innovative Companies Worldwide in 2018, earning the number six spot among travel companies.

Dana Air partners Project Pinkblue, U.S embassy to train 44 Nigerian doctors

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ana Air has deepened its Corporate Social Responsibility with the recent Medical oncology training of 44 Nigerian Doctors at the African University of Science and Technology (AUST), Abuja.

The Medical Oncology training held from 13th to 25th of August, is in collaboration with Project Pinkblue, a nongovernmental organization, U.S embassy in Nigeria and the Federal Ministry of Health.

Speaking on the initiative, Kingsley Ezenw, the media and communications manager of Dana Air, said, “Giving back to the society in which we operate is part of our secrets of success.

We are committed to the health and wellbeing of Nigerians and this training is part of the Upgrade Oncology initiative focused on strengthening the capacities of oncology education, medical oncology curriculum, oncology infrastructures and cancer treatment in Nigeria.”

“The training was led by two U.S. based Fulbright Specialists- Tracey

Minister of Agriculture and Rural Development, Audu Ogbeh (left) at Simba stand during the Abuja Agrik Expo held at Abuja International Conference Centre, between September 18-20, 2018, with him is Business Manager, Simba Group, TVS Nigeria, Akshay Talvar, talking about the TVS XL 100, a new reliable easy to ride powerful multi-utility 2-wheeler Motorcycle made specifically for agricultural load carrying.

O’Connor managing director, a medical oncologist and associate professor at Rosswell Park Cancer Institute, Buffalo, New York, USA and Mike Martin managing director, medical oncologist and associate professor of Medicine at West Cancer Center, University of Tenesse, Memphis, TN, USA.’’ According to Runcie Chidebe, the executive director of Project PinkBlue, the two U.S. based medical oncologists also trained 56 doctors and healthcare workers at Lagos University Teaching Hospital and the 44 oncologists were drawn from all the centres of excellence (CoE) hospitals, namely: University of Nigeria Teaching Hospital, University of Benin Teaching Hospital, University of Port Teaching Hospital, Lagos University Teaching Hospital, University College Hospital, Nnamdi Azikiwe Teaching Hospital, National Hospital Abuja, University of Abuja Teaching Hospital, Usman Danfodio Teaching Hospital, Ahmadu Bello Teaching Hospital, Aminu Kano Teaching Hospital, Barau Dikko Teaching Hospital, Federal Medical

Centre Gusau, Federal Medical Centre Bida, Federal Medical Centre Abakaliki, and two private facilities namely Lakeshore Cancer Centre and Asi Upko Diagnostic & Medical Centre.

Runcie while thanking Dana Air for its strong commitment to the fight against cancer in Nigeria since 2014 said “the fight against cancer cannot be won by using just one strategy, we must employ diversified strategies, and engage diversified stakeholders including the private sector. For instance, Dana Air has been supporting us since 2014, this is commendable!

Let’s not be weary, let’s continue to support activities against cancer by all means possible”.

Chris Bode, the chief medical director of Lagos University Teaching Hospital (LUTH), who was present to supervise the training commended the initiative and was joined by other guests including Prof. F.A. DurosinmiEtti, professor of radiation oncology and the President of Cancer Education and Advocacy Foundation of Nigeria (CEAFON).

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BUSINESS DAY

BD

C002D5556

Tuesday 25 September 2018

Markets + Finance ‘Providing proprietary research, commentary, analysis and financial news coverage unmatched in today’s market. Published weekly, Markets & Finance provides all the key intelligence you need.’

Guinness Nigeria Plc: Utilisation of rights issue underpins profit BALA AUGIE

G

uinness Nigeria Plc just released its audited financial statement for the year ended June 30, 2018 that showed remarkable improvement in key performance metrics.

The stellar performance means the company has navigated the storm of headwinds brought on by the devaluation of the Nigerian currency, foreign exchange scarcity and volatility, higher interest rates, a decline in real gross domestic product (GDP), and increase in cost of imported raw materials that undermined its performance in 2016 and part of 2017.

Guinness Nigeria embarked on a number of restructuring initiatives that helped add impetus to financial performance amid a tough and unpredictable macroeconomic environment.

For instance, the beer maker has increased sourcing of its raw materials locally, deepened its partnerships with local distributors, reduced prices to grow volumes and gain market share, enhanced operational efficiencies and broadened its product portfolio to meet consumer preferences.

The capital injection by way of rights issue has helped the company reduced its debt burden, bolster net margins.

The cash injection also helped the consumer goods giant to deliver on its strategic objectives while contemporaneously giving all shareholders a unique opportunity to increase their shareholding.

Guinness strengthened its presence in the value lager segment via its launch of Royal Kingdom Lager in May, which is priced competitively relative to other competitor brands.

Top line growth driven by value segment Guinness Nigeria released its full year result for the period ended June 30 2018 reporting a 13.54 percent increase in revenue to N14.29 billion in the period under review from N12.59 billion the previous year.

The company’s full year sales were largely driven by

increased market share in the value segment of the beer market. It recorded strong sales volume in economy Malt brand and Dubi Malt.

Value segment now account for 67 percent of the beer maker’s volume while its continued focus on spirit business is expected to contribute to future earnings.

Interestingly, Guinness Nigeria recorded a 4 percent year on year growth in sales at a time when peer rivals like International Breweries, Nigerian Breweries, and Champion Breweries recorded decline in quarter on quarter sales.

Revenue of most consumer goods firms are growing at a slow pace as they are unable to further hike the price of products as consumer wallets remain under pressure. They had enjoyed margin growth last year, thanks to increased sales buoyed by hike in the price of key products.

The company’s cost of sales increased by 21.57 percent to N94.35 billion in (FY) June 2018 from N77.60 billion the previous year; the 21.57 increase in input cost is higher than the 11.27 percent inflation figure for month of August.

Babatunde Abayomi Savage, chairman

A breakdown of costs of sales shows raw material and consumables spiked by 34.03 percent to N71.63 billion in the period under review from N53.43 billion the previous year.

High cost of production can be attributed to increased transportation and upturn in cost of raw material like Sorghum.

Guinness’ cost of sales ratio

increased to 66 percent in the period under review from 61.60 percent the previous year. This means the company is spending more to produce each unit of product.

Gross profit margin fell to 34.05 percent in the period under review from 38.83 percent the previous year as consumer goods firms continue to grapple with low consumer spending and intense competition.

BD MARKETS + FINANCE Analysts: BALA AUGIE

Significant decrease in finance and operating cost underpins profit growth Operationally, Guinness recorded a 36.55 percent increase in operating profit to N13.38 billion as at year end June 2018 from N10.18 billion the previous year.

However, other income fell by 21.33 percent to N668.81 million in the period under review from N847.73 million the previous year.

The combinations of reduction in finance cost and reduction in operating expenses resulted in a 273.68 percent surge in Profit before Tax to N9.94 billion in the period under review from N2.67 billion the previous year. Profit surged by 249.29 percent to N6. 71 billion from N1.92 billion the previous year despite a 336.85 percent surge in income tax expense to N3.22 billion in the period under review.

The growth in the company’s bottom line (profit) was largely driven by reduction in operating expenses and finance cost.

Total operating expenses reduced by 8.58 percent to N35.90 billion in the period under review from N38.97 billion the previous year.

A b re a kd ow n o f o p erating expenses shows marketing and distribution expenses increased by 2.87 percent to N26.01 billion in the period under review, demonstrating a sustained investment in Guinness Nigeria’s brand.

Administrative expenses were down by 28.79 percent to N9.89 billion in the period under review from N13.89 billion the previous year; reflecting the expansion of the company’s portfolio, and improved operating margins with benefits from productivity initiatives.

Despite the sustained input cost pressures, Guinness Nigeria recorded improved operating margins as it benefited from productivity initiatives.

Operating profit otherwise known as earnings before interest and tax (EBIT) increased to 9.39 percent in the period under review from 8.08 percent the previous year.

Net profit margin increased to 4.69 percent in

the period under review as against 1.52 percent as at year ended June 30, 2017. In other words, the company is able to translate increased revenue to profit growth.

Profit margin moved to 6.95 percent in the period under review from 2.11 percent the previous year.

Return on equity (ROE) increased to 7.66 percent in the period under review from 4.47 percent the previous year.

In other words, the company has utilized the resource of shareholders in generating higher profit.

Rights issue pays off as finance cost drops Finance cost fell by 42.27 percent to N9.77 billion in the period under review from N5.64 billion the previous year.

Guinness Nigeria times interest coverage ratio is 2.37 times operating income. In other words, the company is generating sufficient funds to satisfy its interest expenses.

Guinness Nigeria has reduced the amount of debt in its capital structure as Debt to equity ratio fell to 15.68 percent in the period under review from 80.07 percent as at year ended June 2017.

Total debt (both long and short term) reduced by 59.97 percent to N13.73 billion in the period under review from N34.38 billion the previous year.

The reduction in the beer maker’s gearing level can be attributed to the utilization of rights issue floated in 2017.

Guinness Nigeria offered 684,494,631 ordinary shares of 50 kobo each at N58 per share to existing shareholders to raise about N39.7 billion.

The consumer goods giant is poised to compete with peer rivals as it has increased its capital expenditure (CAPEX) spending as the acquisition of property plant and equipment surged by 101.16 percent to N1696 billion from 843 billion the previous year.

S h a re h o l d e r s’ f u n d s surged by 104.12 percent to N87.58 billion in the period under review from N42.94 billion the previous year; thanks to a 427.48 percent surge in share premium to N47 billion in the period under review from N89.60 billion the previous year.

BUSINESS DAY

Tuesday 25 September 2018

EDUCATION

Weekly insight on current and future trends in education

T

he demand for university education in Nigeria is increasing without commensurate increase in funding and infrastructure as parents, students are left stranded when in search for higher education.

While parents are desirous of giving their children quality education at all levels, the sad reality is that such aspirations hardly materialise no thanks to the problems public education system grapples with.

Nigerian public university is bedevilled by severe shortage of human capacity and inadequate infrastructure to accommodate the teeming populations that seek university education annually.

Over 1.6 million candidates registered for the 2018 Universities Tertiary Matriculation Examination (UTME) and the carrying capacity of the existing universities is grossly inadequate to accommodate this army of prospective students.

Those who know in the education sector observe that in the past, Nigerian public universities used to be the place where intellectuals are groomed and academically sound graduates who aspire to grow in their lecturing careers return to.

Today, the situation is different as poor quality university education, incessant strike actions, poor teaching facilities and unconducive learning environment become the order of the day in federal and state system.

Educationists opine that

Primary/Secondary

T

Human Capital

How academic stability, access push students to private varsities Stories by KELECHI EWUZIE low funding figures for public universities, especially in the last three decades, explain the poor state of government owned universities in Nigeria and the growing dip in standards, a situation that has forced most parents to send their children overseas for education.

Olufemi Bamiro, a professor of Mechanical Engineering observes that the constant disruption in the academic calendar of public Nigeria’s tertiary education system is costing the nation billions of Naira annually by way of foreign exchange paid by parents for their wards to school abroad a recent survey reveals.

The emergence of private universities he believes present solution to the problem of access and academic stability.

National Universities Commission (NUC) at the moment has162 universities approved of these numbers, 74 are private universities.

To him, “The boom in private education is as a result of government’s poor education sector policy as well as lack of confidence in public university education, which is bedevilled by constant academic disrup-

Obikwe Agwu, Chevening Scholar; Ifeanyi Udofia, University of Sussex Country Representative and Victoria Tanimowo, Scholar at an event in lagos recently.

tion owing to industrial action and agitation by lecturers”.

“In fact, the leadership of the regulatory agency of university education in Nigeria is of the view that the future of higher education in Nigeria lies with private universities”.

“Apart from the quality education which private university offers, discerning employers of labour approach private universities for recruitment of their graduates”, he said.

Isaac Adeyemi, former vice

chancellor, Bells University Ota, Ogun State opines that the advent of private universities in Nigeria provides the needed opportunity for students to pursue their academic aspirations.

He equally said that academic quality in private university has improved due to the engagement of ICT in teaching, learning, robust curriculums, and establishment of quality control mechanisms.

“Feedback from employers

Lafarge gets FG’s endorsement as national literacy competition kicks off o further boost Lafarge Africa Plc’s strategic nationwide education intervention, Universal Basic Education Commission (UBEC) has endorsed the company’s National Literacy Competition (LANLC) This endorsement by UBEC, a parastatal of the Federal Ministry of Education in charge of Basic Education across the country is in recognition of the remarkable contribution of the initiative to the development of literacy in the country’s primary schools.

Folashade AmbroseMedebem, director, Communications, Public Affairs and Sustainable Development said the company’s understanding of the key role education plays in the development of any society, inspired the need to engage the leaders of tomorrow on critical literacy skills at an early stage.

Higher

23

Speaking at a press conference to flag off the 2018 competition in Lagos, AmbroseMedebem said the Lafarge National Literacy Competition is part of the company’s overall sustainable development strategy hinged on 4 pillars - Climate, Circular Economy, Water and Nature and People & Communities.

The literacy competition finds expression in the People and Communities pillar.

She said Lafarge’s National Literacy Competition is an intervention in Nigeria’s education sector in line with the company’s ambitious sustainability strategy which especially complements the United Nations Sustainable Development Goal 4 – Quality Education.

According to her, “The intervention kicked off with a National Planning Meeting where State Universal Basic Education Board (SUBEB) representatives from all 36

states and the FCT contributed by providing insights for the 5th LANLC. The theme for this year’s competition is “Bridging the Literacy Gap Together.”

As part of activities to mark the recent International Literacy Day, Lafarge employees organised a book reading and painting session for 50 young children drawn from public and private primary schools. Commenting on the company’s commitment to literacy, For the past four years, Lafarge Africa Plc has organised the National Literacy Competition to “Bridge the Literacy Gap” and support government efforts in raising the standard of literacy among pupils in public primary schools between the ages of 9 and 13 years. Since the inception of the competition, over 500,000 primary school pupils in 886 schools across 544 local government

areas (LGAs) have been impacted. Currently, public primary schools across the 109 senatorial districts are being coached in reading and writing in preparation for the competition; progress made as a result of this intervention will be evaluated and state run-offs to select the representatives from each state will begin across the country from September 17 – 27, 2018.

The competition is organised in partnership with the respective State Universal Basic Education Boards (SUBEB) in all thirty-six (36) states of Nigeria and the FCT with the support of Ovie Brume Foundation, will hold its regional run-offs across all six geopolitical zones of the country in Abuja, Enugu, Cross River, Ogun, Kano and Gombe in October. The grand finale of the 5th LANLC will hold on November 15, 2018 in Lagos.

who engage graduates from private universities, validate the high quality of education provided which reflects in the excellent performance of graduates in their employment”.

Adeyemi further observes that many employers give greater importance to soft skills than qualifications. These skills most private universities add to their course of studies include communication skills, analytical and problem-solving skills,

team spirit, creativity and adaptability.

Industry watchers observe that the private sector is currently leading the global trend in employment expansion and wealth creation, stressing that with government policy support, there will be smooth interface for public-private partnerships between the government and the private sector.

According to Bamiro, “Private universities have an edge when it comes to linkages between universities; professional bodies and corporate organisations as such process are enormously beneficial in facilitating the employment of graduates after school.

He insists that higher education institutions need to run programmes that are relevant to their country’s needs and to provide the necessary skills needed by undergraduates to facilitate seamless employment.

He observes that the involvement of professional bodies from business and industry sector in the provision of state of the art facility not only make up for the acute shortage of facility, but also helps students to be exposed to the practical aspects of their studies.

BusinessDay visits LASU’s VC to chart intellectual collaboration

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s part of its effort to build a stronger partnership, officials of Business Day Newspaper, paid a courtesy visit to Olanrewaju Fagbohun, Vice Chancellor, Lagos State University in his office at the Ojo. The visit was to formally introduce the media house to the Vice Chancellor and explore partnership opportunities with the academic institution.

Zebulon Agomuo, BusinessDay Sunday editor who led the delegation, said the Newspaper is one of the most widely circulated print and the most read by people in the business community in the country.

Agomuo stated that for over two years, the BusinessDay has been working closely with LASU by distributing its newspapers at a subsidised cost of N50 only to members of the University Community as against its actual price of N300.

Adeola Ajewole, advert manager said that having already established working partnerships with some leading firms within and outside Nigeria, BusinessDay is now desirous of cementing a partnership with Lagos State University in areas of adverts and events/news coverage.

Olarenwaju Fagbohun, vice chancellor, Lagos State University in his response commended the team for the visit and expressed the university’s willingness to partner BusinessDay on robust intellectual engagements that would benefit both bodies.

According to him, “I think we should be pushing ourselves beyond the regulars of adverts. Those are low hanging fruits that may not be of any lasting benefit to anyone.

I want us to look at high-powered programmes, say seminars, conferences or short courses that people can come and be a part of. That way, you will also have contributed to the University.”

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BUSINESS DAY

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EDUCATION

Tuesday 25 September 2018

INSIGHT

Managing a School: The different customers

OYIN EGBEYEMI

M

a na g i ng a school is quite a peculiar task.

From the outside, people may make assumptions about how easy it is. I remember very specific situations when I was working in the corporate world where people made comments along the lines of “Running a school is easy, and there is so much money to be made”. Well, moving from a corporation to entrepreneurship in the field of education has revealed the peculiarities of running a business from a whole new perspective, and has made me truly appreciate the work that school owners and stakeholders in the education sector

have been doing over time.

The truth is that there is no successful legitimate business or individual who does not go through a series of challenges and some periods of immense anxiety, especially in our environment in Nigeria, where there are so many limitations to the ease of doing business.

However, looking at the aspect of customers’ services, there is a certain uniqueness that schools have. As school management you engage three different categories of customers: the children, the parents and the staff team.

What makes the customers of a school very interesting is that these three categories mentioned are not mutually exclusive and within each category there is no such thing as priority clients as some companies may have: These could possibly be clients who may get additional services as they request from a company and can afford to pay for. The service schools provide is very specific and is tailored to meet certain guidelines and standards, hence add-ons or any preferential treatment are rare to find.

While we have these three categories the primary customer for a school is (or should be) the child. Any school, which fails to meet the educational requirements of a child, can be considered a failed entity itself for the simple reason that the purpose of establishing a school should be to educate children, and it does not fulfil this. This may sound a little odd, and readers my think that this is obvious, but in my experience, working in this sector so far, it has become easy to recognise the various reasons for which people set up schools, and this in turn makes it easy to reveal who the school considers to be their primary customer.

Given that the children should be the primary customers of a school, where do the other two categories fall?

There is a simple cycle that brings this together: Parents pay school fees for a certain service they expect from the school for their children; teachers provide this service through curriculum development and delivery; operational staff ensure that the

facility and physical environment are conducive; children go to school and consume the services of the teachers in the environment provided and take what they learn back to their homes, providing some form of feedback or return on investment to the parents on the school fees that they have paid. With this cycle, it is clear that everyone has a role to play in the child’s development: If parents do not pay the school fees, their children do not get the education that they need.

If teachers do not deliver the curriculum effectively, the children do not get the education that they need.

If the physical environment is not conducive enough for learning, the children do not get the education that they need.

So while it is clear that the children should be the primary customers of a school, it is imperative that everything works together to get this right. In order for things to work from within the school, the Management must ensure that the staff team is satisfied

Female student sets new Maths solving record at Cowbellpedia 2018

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aith Odunsi, a student of the Ambassadors College, Ota Ogun State has set a new competition record at the on-going Cowbellpedia Secondary Schools Mathematics Television Quiz Show nationwide.

Odunsi surpassed the previous record set by Emmanuel Mebude, a student of Ogunlade Memorial Secondary School, Surulere, Lagos, who answered 17 questions in the 60 Seconds of Fame segment of the competition in 2017, solved 19 Mathematics

questions in that segment to advance to the semi-finals of this year’s edition in the junior category Group F. She was joined in the semi-finals by Ifeanyi Anyoku of Graceland International School, Port Harcourt, Rivers State.

The feat by the duo sent four of their colleagues out of the Quiz Show. These include Gospel Omosebi of BiboOluwa Academy, Ilesha, Osun State; Umar Muhammad of Nigerian Tulip International College, Damaturu, Yobe State; and Shekinah Odola

of Evangel Group of Schools, Gombe, Gombe State.

Faith, the only female semi-finalist in Group F, described her experience in the Cowbellpedia Secondary Schools Mathematics Television Quiz Show as fantastic and interesting. “I pray to sustain the momentum and win. I will feel very great to be crowned a champion,” she said.

Ifeanyi, who was thrilled to have crossed the hurdle, thanked his teachers for believing in him and promised to up the ante as the competi-

L-R: Adewale Dosunmu, representative of the Chairman, Surulere Local Govt. Area; Jordi Borrut Bel, managing director and Chief Executive Officer, Nigerian Breweries Plc; Elizabeth Adekanye, permanent secretary, Ministry of Education, Lagos State; Desmond Elliot, member, Lagos State House of Assembly, and Grace Omo-Lamai, Human Resources Director, Nigerian Breweries Plc; during the commissioning of a block of six classrooms and other facilities donated by the Nigerian Breweries/Felix Ohiwerie Education Trust Fund to Itolo Girls Junior Secondary School, Surulere, Lagos.

tion progresses.

In the senior category, Adebisi Ademola of Reality High School, Ilesha, Osun State and Enoch Adelekan from The Ambassadors College, Ota Ogun State progressed to semi-finals.

The four contestants who could not make it beyond the first and second rounds in this group are: Joshua Umoh of Monef High School, Uyo, Akwa Ibom State; Akachukwu Onyuike of Nigerian Tulip International College, Abuja; James Gabriel of Deeper Life High School, Calabar, Cross River State; and Mairo MusaMachima of El-Kanemi College, Maiduguri, Borno State.

Adebisi promised to channel all his energy and capacity to win the ultimate prize. “I feel excited scaling this hurdle. But my ultimate ambition is to win and become the 2018 Cowbellpedia champion,” he said.

On his part, Enoch expressed huge relief for getting to this stage and prayed that he becomes the champion to make himself, his parents and his school proud.

To commemorate the 20th anniversary of Cowbell and Mathematics in Nigeria, this year’s prize money has been doubled as winners in both categories will receive N2 million each with an all-expense paid educational excursion outside the country; while the first and second runners-up will receive N1.5 million and N1 million respectively.

and well equipped with the right tools it needs to carry out its work to the best of its ability. Investing in training and other forms of learning and development, as well as bringing forward other perks and incentives that would ensure that the staff team is happy would go a long way to improve their performance. It is also very important that the staff team feels included in the school’s decisions; that they are carried along and their opinions are sought after, even if the Management does not agree with them. For as long as open communication is encouraged, staff would feel that sense of belonging and ownership, and this would be great for their morale.

When it comes to parents, apart from the satisfaction they stand to gain from their children’s performance, it is important that they too are carried along with the school’s activities and some of the decision making processes. After all, this is where their children spend a significant part of their day.

However, it might get a little tricky for various rea-

sons: naturally, some parents may take specific interest in decisions that affect their own child only; Management may be too lenient when handling the influence of parents; and the school may not have the capacity or clear structure in place for engagement with parents (Parent-Teacher Associations, conferences, etc).

Therefore the school’s management must also be careful to make objective enough judgements on matters arising from parents and take every comment as feedback, which will be used to the benefit of the primary customer, the child.

Managing a school with its peculiarities and various customers is not an easy task. A great deal of balance and discipline is required, but the most important thing is to ensure that the primary customer, the child, is getting the most out of his or her educational experience.

Oyin Egbeyemi is an executive administrator at The Foreshore School, Ikoyi, Lagos.

JCI Nigeria lauds leadership impact of ten young honourees

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unior Chamber International (JCI) Nigeria has honoured the 10 young personalities who emerged honourees in the 2018 edition of the annual global JCI Ten Outstanding Young Persons (JCI TOYP) in Nigeria.

The JCI Ten Outstanding Young Persons (JCI TOYP) Programme is a Junior Chamber International initiative to formally recognise young people who excel in their chosen fields and create positive change.

The ten honourees were pre-announced in a statement issued by JCI Nigeria earlier in the year, after a rigorous and thorough selection process from the different categories of the awards programme that include; Personal Improvement and Accomplishment, Academic Leadership and Accomplishments, Medical Innovation, Scientific and Technological Development, among others.

Notable among the honourees that were in attendance to receive their honour include Reginald Aziza, Jacinta Uramah (represented), Oluseun Onigbinde (represented), John Oluwadero, Stanley E Arinze, Caleb Adebayo, Omowumi Ogunrotimi and Charles Immanuel Akhimien.

Oluwatoyin Atanda, chairperson for the award initiative said the ten finalists that were awarded have shown and demonstrated rare leadership qualities in all chosen fields of

endeavours.

According to him, “We can categorically say that these honourees are bound for the top considering their giant strides in the areas they chose to follow. They truly deserve to be honoured with these prestigious awards”.

Atanda congratulated the honourees for the awards ceremony stating that the recognition comes as a result of their breathtaking innovations, success and leadership skills in their different fields of endeavor.

In his own remarks, Adeniyi Balogun, President of JCI Nigeria, thanked the team as well as corporate partners for making the event a huge success saying that the organisation would not relent in recognising the good deeds of young people. He added “I applaud the commitment of JCI Nigeria Members and Alumni, Local and National officers in sustaining the Junior Chamber International Ten Outstanding Young Persons program by recognizing these young people.”

Some of the judges in attendance at the ceremony include Chief Executive Officer, Accelstra Limited, Isaac Orolugbagbe, managing director, PZ Cussons Plc, Alexander Goma, executive director, Fate Foundation, Adenike Adeyemi and Chief Sustainability and Governance Officer for the Dangote Group, Ndidi NnoliEdozien.

Tuesday 25 September 2018

C002D5556

BUSINESS DAY

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Energy Report Oil & Gas

Power

Renewables

Environment

Another industrial crisis looms as oil price inches toward $80 ...NNPC boss calls for restraints OLUSOLA BELLO

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nother round of industrial crisis is looming in the Nigerian oil and gas industry and if not nipped in the bud the economy would suffer the consequences of any negative actions caused by it.

Bullish news on both the supply and demand side sent oil prices up again weekend, with Brent falling back after flirting with $80 and any attempt for Nigeria not to benefit from this would be catastrophic for the economy. This is why the concerns raised by oil workers needs to be addressed by the agencies concerned without much delay.

Mainkanti Baru, group managing director of the Nigerian National Petroleum Corporation (NNPC), has urged oil workers to halt their planned industrial action over a labour dispute involving the Management of Chevron Nigeria Limited (CNL), a Multi-national Oil Company operating in Ni-

geria, and its staff.

According to a release signed Ndu Ughamadu, NNPC group general manager, group public affairs division weekend in Abuja, it stated that Maikanti Baru had directed its management to work with other stakeholders to resolve the issue raised by the leadership of the Oil Industry unions.

The NNPC boss however expressed optimism that the current dispute would soon be amicably settled.

The corporations also allayed the concerns of motorists and other consumers of petroleum products over possible hiccups in supply in parts of the country due to the oil workers’ ultimatum, assuring that NNPC holds adequate storage of petroleum products across the country to take care of the national demand.

The national leadership of the two major unions in oil and gas industry, Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and Petroleum and Natural Gas Senior Association

Ibe Kachikwu

(PENGASSAN) claimed they are worried that Chevron Nigeria Limited plans to circumvent Labour Contracts guidelines.

They claimed they are becoming extremely worried and concerned with the ways and manners the Chevron Management is executing the end of M15 and H15 Contracts, which is ostensibly laced with hidden plans and intentions to unilaterally and heinously sack thousands of contract

workers in spite of the ongoing intervention of Federal Ministry of Labour and Employment as well as the established Labour Contract Staffing Guidelines in the oil and gas industry.

“While Chevron had decided to close M-15 and H-15 contracts by 31st October, 2018, it is really disturbing to see the new Contractors being engaged by Chevron Management and whose Labour Contract will take effect on November 1, 2018, to start

advertising all jobs, inspite of clear provision for roll over of the existing workers on the jobs, consequent upon which large numbers of the current workforce are most likely to be abruptly thrown into the Labour market in their own country”.

They stated that they see such arrangement as cruel, callous and by all standards an affront on the Nigerian constituted authority and industry extant rules.

Without mincing words, we are deeply bothered by the purported claims being peddled around by Chevron Management that their action of sacking Nigerian workers is a directive from National Petroleum Investment Management Services (NAPPIMS) and the Nigeria Contents Monitoring and Development Board (NCMDB). We then begin to wonder if the role of these reputable government agencies is to create jobs for Nigerians or to compound unemployment situation as already prevalent in the country.

But Chevron in response

to the allegation made by the unions said that it has not violated any law as it took into considerations all the relevant laws before taking the decision it is being accused of.

According to Esimaje Brikinn, general manager, Policy, Government and Public Affairs, Chevron Nigeria Limited (CNL): “Chevron Nigeria Limited (CNL), Operator of the NNPC/CNL Joint Venture, confirms that the existing contracts of all its manpower services providers will expire by end of October, 2018. The expiring contracts are being replaced with new manpower services contracts, which have been awarded in accordance with the open tender process conducted by the NNPC/CNL Joint Venture in accordance with its standard procedures, the requirements of the National Petroleum Investment and Management Services (NAPIMS), a subsidiary of NNPC, and requirements of the Nigerian Content Development and Monitoring Board (NCDMB).

NCDMB, AOS Orwell, others collaborates to train 100 engineers Trump’s tweets drive oil prices more than OPEC does?

ISAAC ANYAOGU

T

he Nigerian Content and Development Monitoring board (NCDMB) in collaboration with the Lagos Energy Academy (LEA), AOS Orwell, and Siemens is putting together a smart Electrical Engineering Training initiative for engineers across the country in a bid to boost capital of petroleum sector technical workforce.

The training which was targeted at young Nigerians engineers seeking professional development in order to bridge the gap between theories and hands-on with soft skills prepares and sets up engineers for successful careers in Electrical associated field.

The program which runs for six months also provides participants with a solid foundation in electrical and electronics theory and practices.

It combines classroom based teaching approach, hands-on, practical training with internship and on-the-job training.

Simbi Wabote, executive secretary of NCDMB, while addressing the participants at the LEA in Lagos recently, noted that the initiative which marks

the beginning of a revised approach to training in the Oil and Gas industry was part of the boards’ 10- year strategic road map.

“I am delighted about this training as it is part of NCDMB’s capacity building efforts towards maximizing utilization of Nigerian human resources. I am happy that in the course of this training, our partners would include soft skills; personal and professional effectiveness which are very important in delivering value. International certification is the main thrust of the training and we are glad it is certified by Siemens.

As the nation moves towards realisation of the provision of 24/7 electricity, the programme is our own contribution to this effort from the perspective of provision of skills, human resources , it also speaks for push for Sectorial linkages in the other sectors such as ICT, Construction and power.”

“In our strategy we look at the end game before we start the journey in itself, the commitment to retain and secure employment for at least 60 per cent of the beneficiaries’ is a big component of this new training model by the board.” He added.

On his part, Femi Omotayo, managing director, AOS Orwell, explained that it is a solution that everybody should replicate as it marks the beginning to solve a long term problem in Nigeria.

According to him, “About a N100 million has been invested into this project in terms of certification, running costs for the facility, maintenance and others. One of the key challenges in Nigeria is youth unemployment, the 2nd thing was that lots of expatriates are brought into the country to do some specialised work which we were told Nigerians couldn’t do because they don’t have international certificates or because we don’t have certain equipment to be able to do these things.”

“Another challenge was that after the qualifications, many couldn’t still get a job that’s why we created this initiative to be able to close that loop hole and partner with big projects like light up Lagos project, street light project amongst others.

We partner with some of these projects then they tell us what they require, we can manage the courses a little bit to make it suitable for their projects so it is easier for them to employ these people.” He said.

Olusola Bello, Team lead, Analysts: Isaac Anyaogu, Stephen Onyekwelu, Graphics: Joel Samson.

STEPHEN ONYEKWELU

O

b s e r v at i o n h a s shown that President Donald Trump’s tweets about oil prices and the Organisation of Petroleum Exporting Countries (OPEC) tend to make prices rally.

“The OPEC monopoly must get prices down now!,” Trump tweeted Sept. 20, just days before the OPEC is due to meet in Algeria. Omani Oil Minister Mohammed Al Rumhy countered that it’s the president who is pushing up prices.

“The recent tweets have more to do with the price increase than OPEC decisions in the last couple of meetings,” Al Rumhy said in a Bloomberg television interview on Sept. 22 in Algiers. “I call it the Washington premium.”

“We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember.

The OPEC monopoly must get prices down now!” Trump wrote on Twitter, Sept. 20.

After Trump said again last week that blame for high oil prices lies with OPEC, a key

crude producer said it is the other way round, according reports on the Bloomberg Terminal.

Khalid al-Falih, Saudi Arabian energy minister said on Sept.

23 that he does not influence oil prices, just two days after U.S. President Donald Trump called on OPEC to bring down the cost of fuel.

“I do not influence prices,” Falih told reporters in Algiers ahead of a meeting of OPEC ministers and allies such as Russia to discuss the situation in oil markets.

Benchmark Brent oil reached $80 a barrel this month, prompting Trump to call again on the Organisation of the Petroleum Exporting Countries to lower prices.

Iranian Oil Minister Bijan Zanganeh also said on Sept.

23 he hoped decisions taken by the OPEC and non-OPEC ministerial committee would not be affected by U.S. President Donald Trump’s tweets on oil producers.

“I hope (Trump’s) threats will not scare my OPEC colleagues and encourage them to carry out America’s orders,” Zanganeh was quoted by the oil ministry’s SHANA news website as saying.

Zanganeh was referring to

a tweet by Trump in which he linked U.S. support for Middle Eastern countries to oil prices on Thursday and again urged OPEC to lower prices.

In July, Trump wrote on Twitter “The OPEC Monopoly must remember that gas prices are up and they are doing little to help. If anything, they are driving prices higher as the United States defends many of their members for very little $’s” 9:46 PM, July 04.

This had the reverse effect on the oil market because oil traded near its highest in three and half years during the said week, boosted by potential disruptions to flows from Iran and the Middle East and Trump saying the Organisation of Petroleum Exporting Countries (OPEC) should cut prices.

“Your tweets have increased the prices by at least $10. Please stop this method,” the oil ministry news agency quoted Kazempour Ardebili, Iranian OPEC Governor as saying.

OPEC countries and other oil producers reached an agreement at the end of 2016 to reduce oil output by 1.8 million barrels per day compared to October 2016. The deal, aimed at boosting oil prices, was extended twice, with the last one set to last until the end of 2018.

Email: energyreport@businessdayonline.com, Tel: +234-8023020011; +234-7037817378;

26

BUSINESS DAY

C002D5556

Tuesday 25 September 2018

Energy Report

11Plc seeks police intervention over Ascon forceful occupation of fuel station Stories by OLUSOLA BELLO

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1 plc ( formerly Mobil Oil Nigeria limited) has dragged Ascon Oil Limited before the Lagos State Commissioner of Police for allegedly taking possession of the Mobil filling station along Oshodi-Gbagada express way through violence means and want the police to intervene in the matter.

In a letter sent to the Commissioner of Police, a copy which was made available to BusinessDay, P.C. Obi & Co, lawyers of 11 Plc company stated, “We have just received another report by our Client, informing us that Ascon officials, in the company of ten police men, went to the subject station on September 11, 2018 and the early hours of September 12, 2018 respectively, where they were seen to position fire extinguishers on the pump islands and also positioned cars on all the pumps presumably with a view to commencing sales at the station.

“We wish to further warn that this is an act of lawlessness which not only constitutes flagrant disobedience to the orders of Justice A.M Lawal of the Lagos State High Court restraining both parties from the station but would also amount to theft as our Client has 42,0000 litres of PMS at the station.

In another petition directed to the Inspector General of Police, dated September 14, 2018, 11 Plc stated, “In the aftermath of the invasion, we also filed a suit against Ascon,

on the basis of which Justice A. M. Lawal of the Lagos State High Court has made an order restraining both parties from the station.

“However, in spite of the extant order of Justice A. M. Lawal, the Commissioner of police has been aiding Ascon to frustrate your directives as well as disobey the Court’s order. In this regard, the Commissioner has posted policemen to the station who routinely allows Ascon officials as they please..

“On September 11, 2018, we received reports that Ascon officials, in the company of 10 policemen, have been visiting the station, positioning fire extinguishers on the pump islands and carrying out other activities preparatory to commencing sales.

In his ruling, dated 23rd May, 2018, Justice A.M. La-

wal, High Court of Lagos had declared, “The argument of the two sides drifted to the issue of, which of the two sides, is entitled to the possession of the property in issue, the contention of the Applicant is that she is in possession, and possession was forcefully wrestled from her on December 20, 2018, the argument of the Claimant is that the 1st Defendant is a contemnor having been ordered to vacate possession and pay mesne profit by the decision of Dada, J. A determination of the argument on the issue of possession will amount to a determination of the main claim of the Claimant.

“Courts have been enjoined not to at this interlocutory stage determine the main claim. Because the issue of the legal right of the 1st Defendant

to the possession of the property cannot be determined at this stage, the court will refuse the application of the 1st Defendant.

“However, this court frowns at the conduct of the Claimant in the taking of possession of the property in dispute forcefully as alledged by the 1st Defendant although the police as claimed by the Claimant. It is wrong to take possession forcefully. So whether possession was taken by self-help or awarded to the Claimant by the Police it is wrong as the property possessed is the subject matter of the suit before the court.

Consequent of the above, the court hereby order the two sides to this suit to vacate this subject matter property of the suit, the property shall remain vacant till otherwise determined by the Court.”

But Ascon Oil in its own petition to the police said the owner of the Land on which the Petrol Filling Station was built is Late Sunday Ogunyade, Mobil took a“development Lease” of this Land and developed the Petrol Filling Station, of which its possession is now in dispute, the first Lease of Mobil was from 1980 to 2000, after the expiration of this Lease, the Owner of the Land, late Sunday Ogunyade took Mobil to Court, in Suit Number LD/2360/2000, Mobil Oil Nigeria Plc v Chief Sunday Ogunyade, because of the breach of the expired lease-to wit leasing part of the Land to Mr. Biggs (UAC) without the consent of the Owner.

By virtue of a term of settlement entered in Suit Number LD/2360/2000, Mobil Oil Nigeria Plc v Sunday Ogunyade, the Lease of Mobil was extended for another Ten (10) Years, From 2000 to 2010, without option of renewal, this Lease elapsed by effluxion of time on 31st August, 2010.

“It is important to note that Mobil has no right of first refusal to either lease or buy this Property, more over the Administrators of late Sunday Ogunyade could not agree on a new lease with Mobil and Mobil was accordingly informed”.

Ascon in its own petition to the police commissioner claimed that towards the end of 2010, the Administrators of late Sunday Ogunyade subsequently entered into a 10 (Ten) Year Lease Agreement over the Property with Ascon Oil Company Limited

and shortly thereafter sold outrightly the Property to Ascon Oil Company Limited.

The title of Ascon Oil over the Property is fully perfected and not in dispute.

“In a bid to stop the Administrators of the Estate of Sunday Ogunyade from leasing and selling the Property to Ascon, Mobil sued the Administrators of the Estate of Sunday Ogunyade at the Lagos High Court TBS, before Justice Akapo Lawal, Mobil’s Suit was dismissed because they didn’t sue the Administrators of Late Chief Sunday Ogunyade in their personal names”.

The Administrators of late Sunday Ogunyade also sued Mobil in Suit number, LA/176/2011, Samson Ogunyade and 3 others (suing as Administrators of late Sunday Ogunyade) v Mobil Oil Nigeria Limited before Justice M.A. Dada at the Lagos State High Court, lgbosere, Lagos lsland, to recover possession of this Property from Mobil, for Ascon Oil Company-new Owners.

Mobil in defending this Suit filed a Counter Claim against Ascon Oil Company Limited.

Judgement was finally given in this Case by Justice M.A. Dada on 5th October, 2012, wherein the Judge decided among other things and dismissed the relief of Mobil in its counter Claim for an order of injunction restraining the 1st -4th Defendants (that is the Administrators of late Sunday Ogunyade) from selling or leasing the Property in dispute to Ascon Oil Company Limited and any third Party.

installation, and project management.

He charged other service providers to build bridges especially now that the industry was rebounding from a period of downturn.

“We see rays of light in the sanctioning of big-ticket projects. There is need to collaborate more and build partnerships that last. The opportunities in the industry are quite vast and there is room for a win-win situation for all,” he said.

The vessel is the most powerful Nigerian flagged DP2 Anchor Handler (140mT bollard pull) owned by a Nigerian company and operating in Nigerian waters. It has a 52-passenger-on-board accommodation capacity, 460m² deck space, and an Electronic Fuel Monitoring System. It is the first of its kind to explore Nigerian waters and has been hailed as a major complement to the local content policy of the federal government Yann Cottart, chief executive Officer, NigerStar

7 while speaking at the occasion said: “our mission is to serve Nigeria’s offshore oil and gas industry by executing the largest and most complex EPIC deep-water projects, and today with this new addition to our fleet, we are closer to our goal as we become the only Nigerian Tier 1 EPCI contractor with a number of modern assets 100% owned and positioned in the country.”

He said acquisition of the vessel will henceforth put the company to the fore as “a contractor of choice” to investors and stakeholders in Nigeria.

“With this investment, NigerStar7 is not bringing only possibilities into the oil and gas sector but creating job opportunities,” he said While giving his welcome address at the occasion, Gbade Durotoye, chief executive officer Nigerdock, expressed the company’s delight in partnering with NigerStar 7, adding that the vessel will be of great benefit to the Nigerian oil and gas sector.

NCDMB gives condition to oil servicing companies ...as NigerStar7 renames multipurpose vessel

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s Nigerian companies are making efforts to take advantage of the opportunities provided by the currents drive of the Nigerian Content and Development Monitoring Board, NCDMB, the agency has reiterated its commitment to ensure that local content in the oil and gas industry is increased considerable in the industry.

On account of this, it has said it would only retain operational vessels, especially those used for logistics that are100 per cent wholly owned by indigenous companies on its platform .This step has become necessary especially now that the board is doing what it is called vessel re – identification exercise.

Simbi Wabote, executive secretary, NCDMB’s, disclosed this at the renaming ceremony of the NigerStar 7 $10 million Adaba vessel held at Nigerdock, Snake Island, Lagos. He said the move was necessary especially now that the emphasis is to encourage indig-

enous companies to be actively involved in areas where they can easily key-in into the local content programme.

The agency boss who expressed delight that the vessel being renamed is one hundred percent owned by NigerStar7 and Nigeria, stating that the occasion was very important because NCDMB is undergoing vessel re-identification process.

“We must commend NigerStar 7 for its renewed commitment to local content practice and the noticeable repositioning it has undertaken to project the value proposition it offers as an oil and gas service provider of high repute,”he said.

He called on other companies to emulate the example of the company in terms of making visible investment in the Nigerian economy.

In accordance with NigerStar 7’s commitment to the Nigerian Oil and Gas Industry Content Development Act of 2010, majority of the personnel on NigerStar 7 Adaba, including its Captain are Nigerians.

The crew have a robust understanding of the peculiarities of the Nigerian environment, he said.

He revealed that another vessel solely funded by the Bank of Industry BoI through the local content fund will be commissioned in Port Harcourt in two weeks’ time, and therefore encouraged investors to delve into the Nigerian oil and gas sector without fear, assuring that there are “abundant opportunities and laws”

to protect them.

The NCDMB boss stressed the need for industry players to partner and cooperate among themselves to develop local content in the industry and grow investors’ confidence in the economy.

He commended the business model of NigerStar 7, which is a partnership between Nigerdock and Subsea7, noting that it has helped the group build a formidable presence in engineering, fabrication,

L-R: Yann Cottart, CEO ,NigerStar 7; Olapeju Adenuga, legal counsel NigerStar 7; Simbi Wabote, executive secretary, NCDMB; Anwar Jarmakani, Jagal Group executive managing director; Ladi Lawanson, Lagos State Commissioner for Transportation; Vincent Ebuh, chairman, Petrolog Limited and Pade Durotoye, MD Nigerdock

Tuesday 25 September 2018

C002D5556

BUSINESS DAY

BOOK SERIALISATION

27

Too Good to Die: Third Term and the Myth of the Indispensable Man in Africa Author:

By Chidi Odinkalu and Ayisha Osori Publisher: Prestige

W The prologue

hen the Senate convened on Tuesday, 16 May, 2006, suspicions were high and tempers were at breaking point.

The debate had drama, anticipation, even foreboding written all over it.

Outside the Senate Chambers, the entire country feasted on every word coming out of the debate.

Inside the Senate, the public gallery was full.

Among the observers of the debate on the day was a powerful delegation from Lagos, the only state in President Obasanjo’s south-west that was ruled by the opposition Alliance for Democracy (AD). The AD delegation was led by its National Chairman, Chief Bisi Akande, himself a former State Governor, and included two other former State governors, Chief Olusegun Osoba and Chief Niyi Adebayo. President Obasanjo ousted all three in dodgy elections in 2003. Beside them in the gallery were the recently ousted chairman of the PDP, Chief Audu Ogbeh; two former Ministers, Chief Tom Ikimi and Chief Yomi Edu; as well as former national vice-Chair of the party in the south-west, Chief Shuaib Oyedokun. From the ruling party, the Senators admitted two of their former colleagues, Joseph Waku and Musa Adede, into the chambers as observers. The government sent a former Senator and President Obasanjo’s Minister for Integration in Africa, Lawan Guba, to watch the proceedings on its behalf. The choice of Guba, a largely unknown junior minister, to represent the government could have been driven by confidence that the Senate would pass the amendments or a reading of the tea leaves which foretold defeat.

Presiding was Kenechukwu Nnamani, a Senator from Enugu in the south-east, who in the previous year emerged as the President of the Senate. Anticipating the conclusion of the debate, Senator Nnamani opened proceedings on this final day with an address to his colleagues, cajoling them to protect what he called “legislative due process.” Admitting that the country faced a “crisis of political succession”, he appealed to his peers not to “become political entrepreneurs who pander after personal gains, but rather delegates and trustees of the people who will preserve democratic governance.”

Contributing to the debate, Teslim Folarin, a supporter of the Third Term Agenda representing Oyo Central in south-west Nigeria, commended the Senate president “for the transparent nature and resolute commitment” with which he had steered the debates. This was about the only point on which all sides in the debate agreed.

The debate itself was unusually meaty. On the floor, Senators canvassed their arguments for and against the Bill with zeal, tact and skill.

The full range of parliamentary debating and persuasive skills was on display.

Senators jousted and contested three major points. First, early in the debate, it became clear that the exact import of the amendment on tenure extension sought was not clear. If the constitution was in fact amended, how much longer could the President rule? Those in support sought to minimize the effect or change the narrative. Bob Effiong, a Senator from Akwa Ibom North, in the Niger-Delta, described “the phrase elongation of tenure or extension of tenure” as “completely wrong”, explaining that “what is correct is that a new term would be added.” In other words, the amendment would only add a third term to the already existing two terms of present incumbents.

If this was so, the Bill was not clear enough. It lent itself to different meanings. Mamman Ali, from Yobe South, countered by enumerating the

various guises under which the exercise had been sold, including “elongation, amendment, tenure limit extension, continuity, ‘carry-go’, a local slang implying arbitrary plunder, and denounced the project as ‘dubious’”. While the proponents suggested that the Third Term Agenda would only allow another four years for the President, Uche Chukwumerije, a vocal opponent of the proposal representing Abia-North in the south-east, argued that “it means that Mr. President will rule for the next 12 years and the Presidency will remain in one zone for 20 years. Full stop!” Senator Muktar Aruwa called it tenure “perpetuation”.

Second, many of the PDP Senators adopted the default position that they supported the extension merely as loyal party members. Some others, like Ifeanyi Araraume, another supporter of thirdterm from Imo North in the south-east, who had a pecuniary interest in the project, claimed it was equally the position of their constituency. He produced no evidence to back up this claim. Senator Jonathan Zwingina came up with a unique marriage of both strains of argument, reporting that his constituency had “advised that if I must remain a member of the party, an officer of the party and if I seek to have advantages and future political ambition under the party, then I must abide by the decisions and toe the line of the political party.”

As a result, he conveniently declared to howls of derision from most of his colleagues in the Senate that he “concurred with the advice of my constituency.” Gbemi Saraki, a female Senator from Kwara State mocked this line of reasoning, reminding her PDP colleagues that “for something that goes to the foundation of the rules of interaction among the three arms of government to be treated in such manner as party policy, in my opinion, is to misunderstand and thereby have little regard for the constitution.” Senator Chukwumerije turned the issue of party loyalty on its head, asserting with considerable prescience that he was against the amendment because he was “a loyal PDP man.

Third term will hurt PDP.” Third, Senators wrestled with the rationales for third-term. In support of the extension, some argued that the President had performed so well he deserved to be granted an extension.

The Chief Whip of the ruling Party at the time and Senator for Akwa-Ibom South, Udoma Udo Udoma, dismissed this argument as “dangerous.”

It was not a very good sign. If even the Chief Whip could not support the official party position, it was enough evidence that the party’s position was hopeless. Udo Udoma and Obasanjo had a history of not being on the same page. Elected to the Senate in 1999, Obasanjo initially nominated

him for a position in Cabinet. When Obasanjo offered him a junior ministerial position, Senator Udo Udoma turned him down, preferring instead to remain in the Senate. His father, Dr. Egbert Udo Udoma, was a distinguished legal scholar and one of the first Africans to receive a doctorate degree in law from Oxford University in 1944. He served as Chief Justice of Uganda for six years from 1963, before returning to a career on the Nigerian Supreme Court. In 1979, Obasanjo by-passed Dr. Udo Udoma for the position of Chief Justice, appointing instead Atanda Fatayi-Williams, whose judicial career began in 1960, one year later than Udo-Udoma’s who was originally appointed to the High Court in 1959.

From Gombe Central in the north-east, Senator Abubakar Mohammed warned: “if we accept that such performance warrants a third-term extension, then we have left ourselves and the people of this country vulnerable to the definite possibility that one day in the life of this country, another president who performs even better would by that extension be entitled to a fourth, fifth or life term.” Several other Senators simply took the principled position that the amendment was unacceptable and anti-democratic.

From Jigawa North in the north-west, Senator Mohammed Ibrahim denounced the proposed amendment: “Extension of tenure is like cancer; it is a disease and it will kill everybody. It is like HIV that has no medicine.” Senator Ibrahim may have been inaccurate about HIV having “no medicine”, but his point was clear. Many other Senators were of this epidemiological mindset.

One argument put forward during the debate and developed since then, including by President Obasanjo himself, was that he had not at any time himself informed the National Assembly that he wanted his tenure extended.

This was strange. The president had cajoled many people privately, hollowed out his party to whip it into line behind tenure extension and sought to bribe legislators to get it passed. Yet, during the debate, Senator Abiola Ajimobi from Oyo South, in the south-west, argued that the Senate should not grant something that the President had not asked for, asserting that President Obasanjo had not himself or at any time “told us that he is looking for extension.” This claim, as it turns out, was dubious. The President himself had indeed approached some Senators personally to seek their support for the amendment.

At the beginning of May in 2006, just as the Senate debate was about to begin, President Obasanjo called Senator Daisy Danjuma. During the call, Senator Danjuma narrated that President Obasanjo “solicited her support for the measure.” When she declined the initial request, the President sought to persuade her not to speak during the debate and when that did not work “tried to convince her not to persuade other Senators to join the anti-third term camp.”

Indicating a motive for the amendment, Senator Danjuma said the President, who became one of Nigeria’s most famous poultry farmers upon his retirement from the Nigerian Army in 1979, told her that “he did not want a third term but did not want to hand the party to his Vice-President (Atiku Abubakar).” The President further pleaded that if her “husband (General Danjuma) wanted the job, I would be satisfied to retire to my chicken farm.” This suggested that in the end, the third term project may have had its origins in multiple motives: ego, personal vendetta and the institutional hubris of propagating the belief that only members of the military could govern Nigeria.

Continues on Wednesday 26 Sept. 2018

28

BUSINESS DAY

Tuesday 25 September 2018

In association with

How technology disruption in real estate is cutting jobs, creating new opportunities

Inside Azuri: What residents stand to gain living in Marina District

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Smart building remotely controlled by technology

Stories by CHUKA UROKO

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s it happens in other sectors of the economy, technology has penetrated the real estate sector and has disrupted the status quo, contracting jobs and creating new opportunities, especially for the millennials.

In many parts of the world, the disruptive impact of technology in real estate is quite evident and many real estate practitioners and professionals have accepted it as the new way to go.

A recent KPMG survey on 130 real estate decision makers from 36 countries shows that 86 percent of respondents see digital and technological innovation as an opportunity, but there is a snag here. Only 24 percent of the respondents has a clear digital and technological strategy.

The survey indicates further that 30 percent of firms in Americas and Asian Pacific (ASPAC) think the impact of property technology (proptech) will be significant with 64 percent in Europe, Middle East and Africa (EMEA) countries agreeing to that.

But only 13 percent felt Blockchain, which is a technological tool that aids registering property, would improve speed of transaction due to technological innovation will have the biggest impact on sector.

In Nigeria, the impact of these innovations is already being felt, though not as deep and pervasive as it is in the Western world. Technology based (online) property platforms like Lamudi which has now rebranded to Jumia Houses, PropertyPro.ng, Real Estate Market, estate intel, etc have brought technology to bear on

real estate transactions, making listing, leases and sales a lot easier.

“While using property portals is a common practice in developed markets, it is a relatively new phenomenon in emerging markets where internet penetration remains low but rising fast”, noted Obi Ejimofo, former managing director of Lamudi (Jumia Houses), disclosing that a survey of local brokers revealed that 91 percent of all professionals observed a significant increase in online inquiries while 59 percent of those surveyed cited online listing platforms as their channel of choice to advertise properties.

This shows that as an innovative and transformational tool, technology has taken position in the real estate sector, accounting for the significant changes which increased data availability and information has brought into market transactions and development processes.

“With an innovative tool like Proptech, there is already a movement driving a mentality change with the real estate industry and its consumers regarding technology-driven innovation in the data assembly, transaction, design and management of buildings and cities”, noted Luqman Edu, CEO, Filmo Realty, at the one-day Real Estate Unite Summit in Lagos.

Proptech is a collective term used to define startups offering technologically innovative products or new business models for the real estate markets. Because of this, the market is already experiencing wave of innovation, investment and entrepreneurial activity.

The implication of this is that there will be job losses because work that five to six people would do manually, technology would employ

just one person to do it and do so efficiently at much lesser time. This means too that real estate firms that are not ready to make the switch may not be favoured by the bright future of real estate that will be driven by technology.

Proptech companies are starting to develop solutions that solve problems that the real-estate market wants solutions for, but in spite of its inefficient processes and unnecessary transaction costs, real estate is one of the last industries to adopt technology which is why there is a clash of generations where start-ups (proptech) are generally aimed at millennials while real estate leaders are generally from an older generation.

Whereas Blochain has the potential to aid land registration, real estate transactions, title ownership, due diligence and building maintenance records without need for human interface and intermediary costs, fin-tech comes in as a platform which supports transactions (sales or leasing) of real-estate; gives more information; is transparent and faster.

This means that in Lagos State, for instance, where land transaction is not only tortuous, but also expensive, the introduction of Blockchain in its land administration will make a clean sweep of the many exploitative ‘tables’ that registration files have to pass through and ‘something’ given.

“Transactions will be direct, properties will be smart buildings, there will be flexible use and flexible ownership of such properties where technology drives real estate”, Edu noted, recalling that in Q4 2016, Trulia, an online property platform, had an average of 140 million monthly unique users

and “45 percent of these visitors, in the last 12 months, are planning to buy/sell a house in next 12 months”.

There are however, inherent opportunities in all these developments. Apart from the rise and rise of technology firms that offer these products and services, new jobs are being created for people with the requisite skills. Opportunities are also be created for vendors and tech equipment manufacturers.

It is estimated that 3-6 percent of the cost of real estate goes to legal, valuation, structural due diligence, contracts, advisory, and agency fees.

Efficient storing of lease information, it is hoped, opens possibility of greater liquidity.

For investors and developers, there are also opportunities that call for increased investment in real estate. “The future of real estate anticipates unmanned, robotic buildings such as in 3D printing and warehousing”, Edu observed, adding, “there will be smart buildings that will be able to run wholly remotely such as in driverless cars and delivery vehicles or bots for logistics and real estate”.

Smart cities which will be driven by technology will integrate multiple information, communication technology and internet of things (IoT) solutions for a whole city. People will be engaged to make all these happen.

Technology has brought the world to a point where people should worry less over basic necessities of life. With crowd-funding, for instance, it does not make sense any longer for property buyers to put down 30 percent equity and take management issues when they can invest in rental cash-flow online.

f the 10 districts in the expansive Eko Atlantic City, Marina District is the most exclusive and this is where Azuri Peninsula, a unique development that promises prospective residents luxury and urban lifestyle, is nestled.

A premier residential destination being promoted

by Eko Development Nigeria Limited, Azuri is a monumental project sitting on 127,507 square metres of land with phased delivery targets. What await residents on completion of this development are luxury residences of the highest specification.

The location of Azuri at the marina-front of the Marina District explains the developer’s choice of a brand name that resonates uncommon luxury and lifestyle, combining the African word ‘Zuri’ meaning beautiful, with Azure which suggests ‘a radiant sea’.

The Peninsula is being delivered as two and four bedroom luxury apartments, six bedroom simplexes and seven bedroom villas arranged across marina townhouse apartments and three outstanding residential towers known as ‘Zuna’ (meaning abundance), ‘Orun’ (meaning heaven) and ‘Oban’ (meaning king), each reaching up to 30 floors.

“This development is taking into consideration lifestyle and ambience. The lifestyle is created by its location. The location is between the Atlantic Ocean and the Lagos channel; we are also creating a marina and we have three water bodies that create a lifestyle and an ambience”, an official of Eko Development explained.

The developer plans ultimate comfort and convenience of residents and so, there will be a five star marina and yacht club with an attractive promenade,

high-end shops, cafes and a wealth of amenities.

Eko Atlantic as an ultramodern city is a layout of 10 districts of which the Marina is one and the Business District is another.

Though Azuri is planned as a mixed-use development that will be 92 percent residential and 8 percent retail, its closeness to the Business District complements its conception as a live, work and play destination. Residents will benefit from this configuration and more.

In line with the highest standards of contemporary living, all apartments in the Peninsula will be fullyfitted with state-of-the-art kitchens and luxury bathrooms, air conditioning and broadband terraces and balconies. The ‘Orun’ and ‘Oban’ Towers, will offer the ultimate in luxury living and these include a private gym and swimming pool as well as stunning, panoramic views of the environment.

Azuri promises residents access to 24-hour concierge service, a gym, two squash courts, and a café. These will come in addition to a relaxing sauna, games, screening rooms and children’s playroom. Outside, residents will have access to a private outdoor swimming pool, children’s playground, gardenpiazzas and valet parking.

In the Marina District itself, there will be highend retail outlets, international standard restaurants and an abundant range of amenities, all of which will establish Azuri as a premier residential destination.

“Eko Atlantic’s highstandard infrastructure, which includes managed and maintained utilities, will guarantee an exceptionally comfortable lifestyle. A well-planned road system, up-to-date ferry service and helicopter service, linking the city to Lagos, will ensure that the city is the bestconnected in West Africa”, the official assured.

Tuesday 25 September 2018

C002D5556

BUSINESS DAY

Lesson for Nigeria from London on affordable homes and expensive locations Stories By CHUKA UROKO

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he London borough of Kensington and Chelsea, like the Banana Island in Lagos and Maitama District in Abuja, Nigeria, has some of the most expensive properties in the UK, but a new development of affordable homes has been approved for that location.

In the Nigerian highbrow locations, especially Banana Island, property values are such that the houses built on that island are targeted at a particular class of people. Any other person is a total stranger who is expected to leave immediately after his visit because he does not belong there.

But the story is different elsewhere. The Mayor of London, Sadiq Khan, has taken over the Notting Hill Gate scheme and doubled the amount of affordable housing being built to 35 percent, up from 17 percent. Under the new plans, about two thirds of new affordable homes will be available at social rent levels, others capped below the London Living Rent level.

The application to redevelop Newcombe House in Kensington and Chelsea was turned down by the local council in March, before the Mayor took over the application later that month. The borough has consistently failed to meet targets for new and affordable homes.

Khan pointed out that last year no affordable homes were given planning permission by the council.

But through his takeover, the Mayor has secured amendments to the plans that increase the level of affordable housing from 17 to 35 percent.

This is a big lesson for government’s at all levels in Nigeria.

The mayor in London who is influencing the redevelopment of affordable homes in expensive areas is an equivalent of a local government chairman in Nigeria.

This underscores the importance the government attaches to housing the citizens.

But in Africa’s largest economy, housing is a luxury. The expensive locations in the country are exclusive for only the rich and high net-worth individuals who have chosen to live in such locations for a number of reasons including affordability, class, taste, and above all exclusivity of that location where only men of means are found which widens the inequality gap in society.

For the London borough of Kensington and Chelsea to have chosen to develop more affordable homes in the expensive locations means there is a deliberate attempt to close the inequality gap in the society.

The development will include a medical centre, step-free access to the nearby Notting Hill Gate, underground station and a new public square with permanent pedestrian and cycle access. “Since taking office, I’ve been clear I will use all the levers at my disposal to increase the supply of council,

social rented, and other genuinely affordable homes that Londoners need across the capital,” said Khan.

Continuing, he explained, “having considered all the evidence available to me, and following hard work by my planning team to increase the level of affordable housing, I have decided to grant permission for this development”.

This is a huge lesson for Nigeria where affordable homes for low income earners is not part of the concerns of government. Majority of private sector operators don’t factor affordable housing into their calculations and those who do usually go to the hinterland to develop. Demand here is not strong because many people would rather rent at the city centre than own a home in the ‘bush’.

The proposed development in London will also include important new step-free access to Notting Hill Gate station, a major

improvement benefitting local residents and visitors coming to enjoy this vibrant and exciting part of the capital. This is unimaginable in a location like Banana Island where such a development will not be permitted because it will impact negatively on the exclusivity of the location.

London has housing crisis like Nigeria, but unlike Nigeria, the government at various levels are addressing the crisis. Nigeria has a deficit estimated at 17 million units that requires an annual housing delivery of about 700,000.

But, Chudi Ubosi, an estate surveyor and valuer, says aggregate output at the moment is not up to 100,000 units.

Khan believes that ‘London’s housing crisis won’t be solved overnight, but hopes “this will send a clear message that I expect developments to include more genuinely affordable housing and other benefits for local people,’ he added.

Mortgage, real estate sectors in focus as MORE Academy sets to encourage players

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s part of efforts at driving growth in the mortgage and real estate sectors of the Nigerian economy, practitioners, professionals and other stakeholders who are making these efforts will soon be recognized and encouraged for their contributions.

Despite the slow growth in the mortgage and real estate sectors, some private and public institutions have made and are still making their mark in these sectors which is why MORE Academy, a private public partnership between Centre for Management Development and Western Atlantic Corporation Limited has decided to reward such institutions with awards.

“This is the first ‘Award of Excellence’ for practitioners and professionals in Nigerian mortgage and real estate industry that was conceptualized to encourage healthy competition and drive quality housing delivery to meet the huge shortfall in housing supply in Nigeria”, explained Adejuwon Akinfolurin, chairman of MORE Academy, in Lagos recently.

FHA targets low income earners in new N27bn housing scheme

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A home in typical expensive location in Nigeria

As a country, Nigeria is faced with serious residential housing deficit which is affecting the quality of life and living standard of citizens. Housing delivery in the country is not responding to its growing population and fast-paced urbanization.

However, there have been some improvements in the recent years in the types, quality as well as innovative standards occasioned by technology to deliver better housing for Nigerians.

“As a support service institution which has a major responsibility to provide

Akinfolurin

the needed capacity building for the industry, we have, with this ‘Award of Excellence’ to encourage and promote healthy competition among stakeholders and provide a platform that will motivate them to do more for the industry”, Akinfolurin explained further.

The award, already slated for October 19, 2018, will come in different categories including Best State Government Housing Programme of the Year; PMB of Note Award of the Year 2018, Outstanding Developer of the year Award; Unique Property Design of the Year Award; Most Exciting Mortgage Product of the Year Award; Local Content Furniture of the Year Award; Alternative Building Technology of the Year Award; National Mortgage Intervention Award 2018, etc.

MORE Academy is not just giving out awards, but also producing for the industry a compendium, a 160-page document, to celebrate the awardees and the entire industry. “The compendium will be a documentation of enduring values that will be used to showcase

the activities and achievements of the industry on a yearly basis”, he assured.

The compendium will be made public and will be seen in government, private and foreign offices lobby, lounge and receptions for increased awareness.

Besides the recognition and award, these whole efforts are aimed at providing more opportunities for industry stakeholders to excel as MORE Academy is committed to training the awardees employees as well as professionals in the mortgage and real estate industry to be able to avail themselves of the training modules it offers.

“The award will really encourage development because competition is healthy for growth. As a result, consumers will be more interested in the products that have been adjudged to be the best standard in the industry. Therefore, this will not only increase the patronage f awardees but also instill confidence in the consuming public thereby continually encouraging stakeholders to bring the best into the industry” , Akinfolurin said.

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he Federal Housing Authority (FHA), Nigeria’s housing development agency, is targeting low income earners in the Federal capital territory (FCT) Abuja in its new housing project valued at N27 billion.

On completion, the scheme will deliver 1,650 housing units of different configurations. This means that the staggering housing deficit in the country will be reduced by that number while a corresponding number of low income earning households will be taken off the property market.

Nigeria has a heavy housing deficit burden which the World Bank in one of its reports estimated at 17 million units, a figure experts say has become not only trite, but also untenable, citing population growth, rising urbanization and increased number of school leavers that have attained home-owning age.

The FHA scheme comprises 550 homes located in Zuba, Kwali and Lugbe axis of the FCT. The buildings range from one-bedroom flats to five bedroom luxury apartments and it is expected that these projects would be delivered soon, though at different times.

“Zuba is almost completed while the one in Kwali is ongoing and Lugbe phase II has just started”, Mohammed Al-Amin, FHA managing director, disclosed, adding that there were also on-going projects in Apo, Guzape area of the FCT for the high-income earners which was 90 per cent completed.

In its determination to serve every strata of the society, the housing authority is also planning to begin another scheme in Maitama area of Abuja which will consist of villas, duplexes and luxury houses.

Mohammed explained that the housing initiative, which was aimed to make houses affordable to the low-income earners was under the social housing scheme, adding that locating houses far away from the main city does not go well with the government, hence the initiative of building houses in the fringes of the city.

“The demand for the houses is high. None will be above five million and there are one to five bedroom houses. The good thing is, if you are going through the government mortgage system, you don’t have to pay what is called equity. You don’t have to pay 30 per cent of the money before a house is given to you,” he assured low income earners who is scared of affordability.

The FHA boss advised buyers not to negotiate with anyone who is not a staff of the FHA. He assured that the digitization initiative engaged by FHA would eliminate double allocations, forgery of documents and ensure quick services.

“There exist cartels who lie to potential buyers that they have land to give them. We keep telling Nigerians not to negotiate with anyone who is not an FHA staff.

Even if the person is from FHA, you should ask him if he is from estate department. Only people in estate department and, to some extent marketing department, are allowed to interact with the public”, he warned.

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Tuesday 25 September 2018

LegalPerspectives With Odunayo Oyasiji Case Review

Niger Classic Investment Ltd V. UACN Property Development Co. Plc & ANOR (2016) LPELR-41426(CA)

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What to note: his is a review of an already concluded Court of Appeal matter. This matter provides an insight into contractual issues like when a party can claim for specific performance, meaning of ‘subject to contract’, interpretation of a written contract, waiver and enforcement of contract, binding contract.

Facts: The appellant and 1st respondent agreed on the sale of a property at No. 28B Glover Road, Ikoyi, Lagos. The 1st respondent later offered a second property at 28D Glover Road, Ikoyi, Lagos to the appellant through the letter tagged AA2. The appellant claimed to have discussed the consolidation of the two sales into one transaction with the 1st respondent on phone and that it is on this basis that the letter tagged AA3 was written to the appellant. The said letter provided a stipulated date by when the appellant must have paid the sum of Two hundred and Fifteen Million, Two hundred and Fifty thousand Naira (N215, 250, 000.00) to complete the transaction. The appellant didn’t make the payment by the stipulated date and the 1st respondent dedicated all the money paid to the completion of the earlier transaction with regard to the property at 28B Glover Road, Ikoyi, Lagos.

The 1st respondent also wrote a letter withdrawing the offer for the property at 28D Glover Road, Ikoyi, Lagos. The appellant therefore instituted this action at the High Court of Lagos State seeking the reliefs below“a) INJUNCTION restraining the 1st Defendant by itself and its agent from disposing of or dealing with or both the two units of property in any form prejudicial to the interest of the claimant. b) INJUNCTION restraining the 2nd Defendant from registering any interest whatsoever in any one of or the two units of property known as 28B Glover Road, Ikoyi, Lagos, other than the claimant’s interest, until the final determination of this action. c) A MANDATORY ORDER compelling the 1st Defendant to accept payment of the sum of N100million paid by Lt. Gen M.I. Wushishi through Britannia - U Nigeria Ltd on behalf of the claimant on the 3rd January, 2012 as further payment for the purchase of both units of property known as 28 Glover Road, Ikoyi, Lagos, and the sum of N90,250, 000.00 (Ninety Million, Two Hundred and Fifty Thousand Naira) being the balance of the purchase

price for both units. d) AN ORDER directing the 1st Defendant to execute a Deed of Assignment in respect of the two units of property in favour of the claimant and any other instrument necessary to transfer the titles therein to the claimant and to take all other steps to perfect such titles in the name of the claimant on payment of the balance stated in (iii) above. e) AN ORDER directing the 1st defendant to pay the costs of this action assessed at N10million.”

The High Court determined the matter in favour of the defendant/1st respondent. The claimant/appellant being dissatisfied with the decision of the lower court appealed to the Court of Appeal.

Issues for determination: The appellant formulated five issues for determination while the 1st respondent formulated two issues. The court adopted the issues formulated by the appellant for proper determination of the matter before it. The issues formulated by the appellant are – “i. Whether the lower Court was right in coming to the decision that there is no binding contract between the Appellant and the 1st Respondent in respect of which a decree of specific performance can be issued in favour of the appellant in this case. ii. Whether the lower Court was right in holding that time was of the essence of the contract of sale of the two properties (which is denied), and that there was no waiver of the time as stipulated in Exhibit- AA3 on the undisputed facts of this case. iii. Whether the lower Court was right in failing to hold that

the 1st Respondent’s letter dated the 20th day of December 2011 is a nullity. iv. Whether after having held that Exhibit-AA3 had consolidated the sales of the properties into a single transaction, the lower Court did not contradict itself and occasion a miscarriage of justice when it held that the 1st Respondent rightly unilaterally appropriated so much of the payment received towards the purchase of only No. 28 B Glover Road, and that specific performance could not be decreed in respect of No. 28D Glover Road, despite willingness and undertaking by the Appellant to complete the payment for the consolidated sale. v. Whether the lower Court was wrong and acted without jurisdiction in holding that the 1st Respondent could withdraw from its contract to sell house 28D, Glover road, Ikoyi to the Appellant and that the 2nd Respondent can register any interest, other than the interest of the Appellant, as may be presented.”

Submissions/Arguments: The appellant’s counsel argued that the trial court acknowledged that there was a valid contract for the sale of two properties (in one transaction) between the parties. He further submitted that the 1st respondent had by its letter (tagged exhibit AA3) accepted the appellant’s offer and as a result created a binding and part performed contract. The counsel argued that the delay in the payment of the balance of the contract sum amounts to a breach of contract which entitles the 1st respondent to terminate the contract and not to severe the two properties and consider

the amount paid as full payment for one of the two properties. He further stated that time is not of essence in the contract and that if it is the 1st respondent had waived its right by accepting the payment of the sum of 25million after the agreed date.

The 1st respondent on the other hand argued through its counsel that an examination of its letter tagged AA3 clearly shows that some conditions must be met to make the contract to be binding. It was argued that the condition is for the appellant to credit its account with the outstanding sum within a specific time for the transaction to be concluded. Therefore, the appellant cannot rely on the said letter as it didn’t comply with the condition stated in it. The 1st respondent contended that there was no evidence to show that it waived its right of accepting payment within the stipulated time.

Judgement of Court: The court held that there are certain circumstances under which the court can make a decree of specific performance- the party praying the court for the decree must have fulfilled the terms of the contract (he who comes to equity must come with clean hands), there must be no other available remedy in law and it can only be granted where there is a valid contract. To be successful on this claim, the appellant ought to show that he had done everything expected of him under the contract. The court stated that a breach had occurred by the conduct of the appellant and therefore there is no binding contract between them.

The court held that the letter

tagged exhibit AA3 is an offer letter from the 1st respondent and not an acceptance of offer made on phone as claimed by the appellant. The court noted that the said letter has features of an offer letter as it stipulates condition which must be fulfilled. Also, the court stated that its duty is to interpret what is placed before it and not to read extraneous terms into the contract (like telephone conversation referred to). The court also noted that the letter tagged AA2 through which the offer for the second property was made was tagged ‘subject to contract’ and that anything tagged as such signifies that there are conditions to be fulfilled.

The court arrived at the decision that there was an offer with a precondition in the letter tagged AA3 i.e. “Kindly arrange to credit our account with the outstanding sum of Two hundred and Fifteen Million, Two hundred and Fifty thousand Naira (N215, 250, 000.00) on or before 27th September 2011 to enable us conclude this transaction.”. The precondition makes time to be of essence and failure to pay by the stipulated date aborted the contract. Therefore, the contract is not binding and there cannot be acceptance if the precondition is not met. The court further held that exhibit AA3 consolidated the sale of two properties in one transaction and that failure to abide by the precondition of payment by a certain date amounts to the return of the parties to status quo i.e. sale of only the property earlier agreed upon. The act of the 1st respondent by converting the money to mean full payment for the property earlier agreed upon is proper.

The court held that there was no waiver of the precondition as the 1st respondent communicated the withdrawal of the offer of consolidation in AA3 to the appellant and applied the money paid towards the completion of payment for the initial property agreed upon. The court finally resolved all the issues against the appellant.

Conclusion Conditions stipulated in a contract are sacrosanct. They are to be honoured by the parties to the contract. The court will not interfere with it. Rather, the court will usually give effect to same.

The court will not go outside the terms of a written contract when making attempt to interpret it.

Therefore, parties must learn to always go through the process of documenting whatever is agreed upon. The court will not give effect to mere words of mouth that are not documented.

Tuesday 25 September 2018

C002D5556

BUSINESS DAY

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FEATURE

Tough time for Lagos PDP ahead 2019 elections The People’s Democratic Party (PDP) in Lagos State have in recent times been engulf in internal crisis and in disarray, culminating in defection of its former state chairman Moshood Salvador to the ruling All Progressive Congress (APC), Iniobong Iwok, assess the issues and implications for the party ahead of next year’s general elections.

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ith just about few months to the 2019 general elections, it appears the crisis which has engulfed the Lagos State chapter of the main opposition the People’s Democratic Party (PDP) is showing no signs of abating.

The PDP as never hidden its intention to rule Lagos state, however, despite been the ruling party in the centre and controlling most states across the country, from the advent of the fourth republic in 1999, until 2015, when it was dislodge by an alliance of major political parties which give birth to the ruling All Progressives Congress (APC), the Party have however, not been able to make any significant inroad into politics in Lagos state.

The PDP, however, made significant success in the 2015 general elections in the state; wining six 24 House of Representatives seats and eight of the 40 state Assembly positions.

Also in the 2015 gubernatorial election, its governorship candidate Jimi Agbaje, narrowly lose by about 100, 000 votes, the result shows that APC candidate incumbent Governor Akinwunmi Ambode polled 812, 39, of the votes cast, while the PDP had 659,738 votes.

Observers had expected that the party would have consolidated on these gains, but the series of protracted internal crisis in the last three years may affect the party’s fortunes in the 2019 general elections.

But just after this 2015 general elections success, its was hit by protracted leadership crisis; initially between Moshood Salvador and Segun Adewale, with both party stalwart claiming to be the authentic state chairman.

This crisis led to the defection of the seven out of the eight lawmakers of the party in the State House of Assembly to the APC. Just when the leadership crisis seem to have been resolved by the Uche Secondus led national leadership, and Salvador had assumed the position as the party’s state chairman, another crisis over sharing of state executive’s positions between Salvador and his presumed political god-father and leader of the party in the state, Olabode George, developed; this crisis eventually culminated in Salvador’s recent defection to the APC. Speaking on reasons for his defection to the APC, Salvador said he took the decision to dump the PDP because all his efforts to move the party in the state forward had been frustrated by some elements

Uche Secondus

in the party, alleging that a former deputy national of the party, Olabode George, had done everything possible to undermine the progress of the party in the state.

Salvador said he could no longer labour in vain, adding that the national leadership of the party had done nothing to support or appreciate his efforts in PDP. “When you have people or leadership that cannot give you encouragement to carry out your vision, you take it to another place where it will be appreciated.

“I am not happy that I am abandoning what I laboured for, but I have to move on with my supporters because I cannot continue to labour in vain.

“Today, the chairman of PDP Board of Trustees called me on the defection and I told him to allow me consult with my people before feedback.

“The PDP National Chairman, Prince Uche Secondus also called me for the first time since my travails.

“He never called since I was put in jail on a cooked up murder charge; he called me today to ask why I want to defect.

“And I told him it is not possible for me to be in the same party with Bode George because he undermined all my efforts to reposition the party.

“He was doing all these things and the national leadership was allowing him, saying he is an elder.

“Bode George also cooked up things to put me in jail in the murder case of late Aborishade.

Bode George

“Enough is enough. I am leaving the party with my supporters and I am taking them to APC where they would be recognised and appreciated,” A chieftain of the PDP in the State and Lecturer in the University of Lagos (UNILAG), Adetokunbo pearse, equally blamed Olabode George for the woes bedevilling the party, lamenting that the party’s leadership in the state had refused to learn from previous divisions which had affected it electoral chances.

“Lagos PDP has refuse to learn it lessons, since after the 2015 elections, it been one crisis or the other; these are the issues that led to their poor showing in the last council election in the state. I put the blame on Bode George he is the one creating this confusion by insisting on controlling the State exco and putting the party struc-

Lagos PDP has refuse to learn it lessons, since after the 2015 elections, it been one crisis or the other; these are the issues that led to their poor showing in the last council election in the state

ture under his grip.

“What have his leadership brought to the party in the State over the years? If not for Jonathan I am not sure PDP would have won those positions they won in 2015 general elections”.

However, the party leadership in the State have always maintained that the recent defection of Salvador would not affect its electoral chances, has it acting chairman Waliu Hassan and other party leaders were equally capable of returning it to success in the 2019 general elections.

But a chieftain of the party in Ikeja, and a member of the state executive, who spoke on the condition of anonymity, noted that Salvador was architect of his problem, accusing him of refusing to respect the sharing arrangement for the State executive positions in the party as agreed across the State, while exonerate Bode George of any blame in the current crisis.

“It is wrong for you to say Bode George is the problem of the party in Lagos, that is and assumption of the individuals who are trying to rubbish the effort of George over the years we all know his contribution to the party.

“There was an arrangement for excos to be share between George camp and the other camp on 35-65 bases, but Salvador disobeyed and disregarded that arrangement and instead brought in his people into the State executives.

“This decision infuriated a lot of people, and even George warned him but he refuse, a lot of

us left the State exco, because we were not happy with the arrangement. When he started to inaugurate local government chapters across the State, he was warned at the national level to suspend the inauguration till pending issues were resolved but he refused until when we had that killing of Apapa local government chairman. His defection I would not bring an end to the party”.

There is however, jubilation in the APC camp in the State over the defection of Salvador and thousands of his followers into the party, the National leader of the APC, Asiwaju Bola Ahmed Tinubu, while receiving Salvador to the party at the Agege Stadium recently, said that the defection of Salvador into the APC in the State would strengthen the party, while also stressing that PDP in Lagos had finally been buried”.

“We welcome you to the APC I want to assure you that you have made the right decision to join the APC. Salvador was the backbone of PDP in Lagos State and with him joining us it means PDP have disappeared in the State. Salvador is a true leader who has no ambition but for his love for the People.

“Tinubu said.

However, analyses are of the opinion that the PDP would find it difficult to pose any real threat to the APC in the 2019 general elections in Lagos Stat, If it the party does not put its house in order.

The danger here is that Lagos risk turning into a one party State.

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BUSINESS DAY

C002D5556

Tips & Talking Points

Harvard Business Review

Your team should get along well — but not too well

TALKING POINTS Closing Time 9,000: In 2016, European banks shut down more than 9,000 branches. +

Advertising Overload 4,000: Marketing experts estimate that the average American sees or hears over 4,000 ads per day. + Sweet Victory 2.5%: Twelve weeks after CocaCola launched its Share a Coke campaign in 2014, sales increased by 2.5%. + Competitive Edge 33%: In a report published by McKinsey and Company, companies with ethnically diverse executive teams were 33% more likely to outperform industry competitors on profitability.

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t’s good if the people on your team like one another, but too much harmony can dampen creativity and innovation. Of course, you don’t want team members to be at each other’s throats, but when everyone always gets along, complacency can set in. To keep this from happening, encourage productive conflict — the kind where people express disagreements, negotiate different viewpoints and work under a certain amount of pressure. Encourage people to speak honestly, even when it feels uncomfortable. If the team needs a little push, assign one or two people the role

Managers, let your team know it’s OK to cry at work

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of devil’s advocate to get opposing views on the table.

You can also disrupt complacency by setting bold but achievable goals for your team. People tend to perform at their best when tasks are moderately difficult, so create some tension between the skills your team has and those required to accomplish a certain task. Projects should be feasible — but it’s OK if the team struggles with them a little, too.

(Adapted from “Too Much Team Harmony Can Kill Creativity,” by Darko Lovric and Tomas ChamorroPremuzic.)

(Adapted from “Why Is Crying at Work Such a Big Deal?” by Jeneva Patterson.)

eing asked to speak on a panel can be an honor, but don’t think of it as a walk in the park. Sure, it’s less nerve-wracking than delivering a solo talk, but just showing up and answering the moderator’s questions is unlikely to make for an interesting discussion. Spend time preparing what you’ll say, and start by reaching out to the moderator well before the event. Ask how they intend to run the session. For instance, will they call on people to answer particular questions, or will it be a free-for-all where you’re expected to jump in? Do they have a list of questions already prepared, and if so, can they share

it with you? That information will allow you to picture how the panel will go and steel yourself in advance if, for instance, you’re a bit shy and aren’t used to fighting for airtime. You’ll also want to plan out your talking points and try to speak up early on. The person who talks first often sets the tenor of the debate — plus you can ensure the person speaking before you doesn’t steal the key point you wanted to make.

(Adapted from “How to Prepare for a Panel,” by Dorie Clark.)

o one likes getting to the end of the day and feeling that, even though you’ve been frantically working for eight hours, you haven’t accomplished anything important. To avoid spending all your time answering emails and texts, try scheduling important tasks in your calendar. Block out an hour or two so that the task doesn’t get lost in the blur of the day. For something really important, block out most of the day (even if you won’t need that long). And if you habitually set goals so lofty that you end up putting them off, try this: When you consider a goal, also consider a half-size version.

Mentally compare the two versions and ask yourself which is

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(Adapted from “The Most Productive Meetings Have Fewer Than 8 People,” by Paul Axtell.)

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someone cries, you can say, “Clearly, many of us feel strongly about this topic. It makes me feel like crying too!” You can even share an example of when you’ve cried at work. This will show your team that being vulnerable is OK, which increases feelings of trust and safety and gives implicit permission to anyone who might need to cry in the future.

ost meetings have too many people in them. Deciding who to include can be tricky, but don’t default to inviting everyone on the team. To have the right people — and only the right people — in the room, you have to know specifically what you’re going to address. Create a clear agenda and then ask yourself: Who must be present for this discussion to yield results? Who would you cancel the meeting for if they could not attend?

Start with this core group. Add more people only if you think they will add value to the conversation or gain value by being there. To avoid irking those who weren’t invited, share the criteria you used to decide. For example, perhaps you focused on who has the most knowledge about the topic or who will be involved with the implementation.

If you still get complaints, let people ask to be included next time, and then err on the side of granting their request if they present a solid reason for attending.

If you’re speaking on a conference Schedule time for your most important work panel, don’t wing It

c 2017 Harvard Business School Publishing Corp. Distributed by The New York Times Syndicate

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The invite list for your next meeting Is probably too big

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Fresh to Market 900: Last year ALDI, a German discount supermarket chain, announced plans to open 900 stores across the United States. +

f someo n e cries at work, your instinct may be to ignore it or even to leave the room. But as a manager, it’s important for you to make people feel comfortable with what is a normal biological response to stress, frustration, or sadness.

Send the message that no one will lose credibility or be seen as less competent if they cry, regardless of gender. (When women cry, they’re usually told to keep it together; when men do, they’re congratulated for being brave or vulnerable.)

Openly acknowledge that crying is a natural, healthy reaction. The next time

Tuesday 25 September 2018

Firstbankngr

FirstBankofNigeriaLtd

@firstbanknigeria

+FirstBankNigeria

more realistic. If your task still feels intimidating, shrink it further until it seems doable. You might end up with a goal that’s one-fourth or one-tenth the size of what you initially considered — but it’ll feel much more achievable.

(Adapted from “How to Focus on What’s Important, Not Just What’s Urgent,” by Alice Boyes.)

Tuesday 25 September 2018

BUSINESS DAY

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Nigeria’s economic growth slides as...

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naira,” said Patience Oniha, Director

General, Debt Management Office during a press briefing in August.

Although the current administration blames the poor performance of the economy in the last few years to the collapse of crude oil prices, the economic strategy implemented was to increase government spending in order to ensure steady economic growth, yet this strategy has failed to yield the expected benefits.

Money has been spent but growth has been scarce or stunted.

Between 2014 and 2017, Nigeria spent a total of N5 trillion servicing both local and foreign debt according to budget estimates. Yet the borrowings failed to lift growth as declining revenue was used to service rising public debts. Poverty levels jumped in the country as economic growth this year fell behind population growth for the fourth consecutive year.

This year, Nigeria plans to spend N2.01 trillion on national debt service and is expecting better economic results, yet economic growth has slid for two consecutive quarters already.

In June 2018, local and external borrowings in the country had risen to N22.3 trillion while the debt service to revenue ratio is now around 63 percent according to International Monetary Fund (IMF) estimates which is quite frightening for any economy.

At the end of 2015, the weighted average finance cost of national debt was 10.77 percent, driven by high cost oflocalborrowingwhichwasaround13 percent. Little has changed since then, Nigeria’s average one Treasury bill on Friday yielded 13.4 percent and 5-10 yearbondyieldswereabove15percent.

Alsowithinterestratesrisingabroad,the cost of external borrowing is also on the rise, thus, putting further pressure on the weight average cost of debt.

In July, DMO warned that Nigeria’s high debt service to revenue ratio,

which deteriorated in 2016, could trigger a debt crisis. IMF also expressed concerns about Nigeria’s debt servicing capacity, as the size of the total debt keeps rising against its revenue.

Nigeria expects to raise around $2.8 billion through Eurobonds and around N793 billion locally later this year to fund the 2018 budget deficit.

Currently, there seems to be no

Herbert Wigwe, group managing director/ CEO, Access Bank plc (r), with Ibukun Awosika, chairman, First Bank Nigeria plc, at the industry session on Gender Equality to commemorate 5 years of implementing the Nigerian Sustainability Banking Principles in Lagos.

West Africa’s biggest mall risks closure on...

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developers, transcends financial value as it has, from commencement until date, empowered about 5,000 Nigerians through direct and in-direct employment.

The action of the state government, according to the developers, is unfortunate as it is impacting negatively on the retail facility whose purpose is to provide convenient shopping experience and create jobs for residents of the state, especially those residing in the Ajah and Epe axis of the state.

“We were told that the state government wants to carry out its ‘Light Up Lagos’ project on that road. The state is exercising its sovereign powers and, as responsible corporate citizen, we do not want to join issues with the government,” Fabian Ajogwu, Novare Real Estate Africa’s chairman, told BusinessDay in a phone interview.

Attempts, through phone calls, to reach the Lagos State Commissioner for Energy and Mineral Resources whose ministry, we learnt, is handling the Light Up Lagos project, for confirmation, failed as the commissioner would not pick the calls.

But investment analysts say this singular action is not encouraging investment, insisting that government should not be taking actions that seem to be anti-investment or has the capacity to chase investors, especially foreign direct investors, from an economy that desperately needs them to grow.

The action, according to the ana-

plan to cut the growing national debt rather, DMO is more focused on reworking the composition of the debt. DMO targets an optimal debt composition of 60:40 for domestic and external debt, respectively, as against the 70:30 as at June 2018.

Eventually if the next crude oil price shock occurs in 2019 or 2020, Nigeria may once again experience a full blown debt crisis which will completely cripple economic growth if the debt growth is not curtailed soon.

lysts, belies the state government’s assurance to investors at the opening of the mall in August 2016 when the governor, Akinwumi Ambode, stressed government’s commitment to increasing inflow of investment and foreign capital through investment-friendly reforms and provision of enabling environment for commerce.

Though Lagos as the commercial nerve centre of Nigeria is ahead of other states in terms of economic development, analysts say the state could have been a lot bigger economically if its environment had been more enabling and its policies more encouraging.

“The state should be encouraging the development of more retail facilities because of its potential to create jobs and promote tourism.

Again, the number of malls in Lagos is still a far cry from what it needs as a ‘mega’ city with growing population and fast-paced urbanization,” said an analyst who did not want to be named.

With the rise in middle class population in Nigeria, retail business in the country gained traction and has, between 2009 and date, attracted significant interest from local and international investors who developed modern shopping malls and retail centres similar to those in Europe, America, South Africa and other developed nations.

It has attracted foreign direct investments estimated at $3 billion from a zero base and, apart from accelerating infrastructural development in Nigerian cities, the market also created job opportunities for

skilled, semi-skilled and unskilled workers in excess of 1,000 jobs per retail center.

Today, on account of economic realities that have seen job losses and significant drop in consumer spending power, the market is struggling with many developers rescheduling projects delivery timeline and reviewing project size; completed and delivered malls are battling with shallow tenant pool and high vacancy rate which combined impact are discouraging fresh investment in that market.

The analyst noted that the Lagos state government should not add to this problem through such actions as the one that is already affecting patronage and reducing footfall at Novare Lekki Mall.

“Retailers are complaining of low patronage and if their concerns are not addressed quickly, they may be compelled to close shop,” the analyst said.

The federal government is also guilty of this anti-investment decisions and policies. Michael Chudi Ejekam, the CEO, Atreos (retail investment holding platform), recalled in an interview how at the peak of recession, government turned down savvy investors who were interested in investing in the economy.

“Government is not encouraging the growth of this business.

When some foreign investors want to come in and invest, government was not listening and came up with all manner of regulations. Some of us thought that government should have encouraged them especially when there is scarcity of new investors in the market,” Ejekam stated.

Tuesday 25 September 2018

2019: Ambode’s chances still uncertain...

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The third aspirant in the race, Babafemi Hamzat, a former commissioner for works and infrastructure in the state, had been silent since obtaining his nomination form, leaving many to believe he would not put up a strong showing in the primary.

A source told BusinessDay on Monday that Ambode may stand down in the primary if by Wednesday; the party still does not accede to his supporters’ demand for an automatic ticket for him.

BusinessDay had before now reported that Ambode had warned his aides and supporters to play down the disagreement with the APC leadership in Lagos, as he would not publicly ‘fight’ Bola Ahmed Tinubu, his benefactor in politics.

The Governor’s Advisory Council (GAC), the highest decision making body in the state, had met on Saturday, and after much debate on the crisis, agreed to constitute a committee to work out a primary that would allow the three aspirants test their popularity. But the pro-Ambode faction within the GAC had argued for the governor to be given the right of first refusal, through an automatic ticket, as a show of respect for the office he occupies.

According to a source close to the Government House, Alausa, Ambode is waiting for the report of GAC’s committee expected Wednesday, to enable him take his final decision on his second term bid. The governor has the right to stand down or go for the direct primary. Between now and Wednesday, the matter would be resolved, the source said.

Meanwhile, ahead of Saturday’s governorship primary, the ambition of Babajide Sanwoolu on Sunday received another boost as

vice-chairmen of all the 57 council areas in the state endorsed him as the next governor of Lagos, promising to align with the party by voting him in the exercise to make him emerge as the APC candidate for the 2019 poll.

The vice- chairmen under the aegis of Pillar 57 under the chairmanship of Bolanle Bada, who is also vice-chairman, Ikosi-Isheri LCDA, gave this pledge at a parley attended by leaders of Mandate Group, including Cardinal James Odunmbaku, i Kaoli Olusanya, Alhaji Ganiyu Badmus, among other APC leaders in Lagos State.

Tayo Ayinde, the Director-General of Babajide Olusola Sanwoolu Campaign Organisation (BOSCO), was also in attendance.

It would be recalled that local government chairmen across the state, also last Saturday endorsed Sanwo-Olu. Sanwoolu will be contesting the primary against the incumbent, Akinwunmi Ambode and another aspirant, Femi Hamzat.

Speaking further, Bada lamented the plight of majority of her colleagues under the present administration in the state, lamenting that the situation had reached a level that they had to resort to praying and fasting twice in a week for God to bring them another governor that would listen and bring them succour.

According to her, it has been difficult for them to access Governor Ambode since he assumed office.

Speaking earlier, a former Deputy Chairman of the party in the State, Cardinal Odunmbaka, aka Baba Eto, said he was not a politician who would raise one’s hand up for support and would later change his mind, declaring that Sanwoolu was the next governor of Lagos State.

Nigeria’s Q3 internet subscription improves...

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57% in a population estimated at 185 million, placing Nigeria well above the African average of around 16%”.

A report released by FBNQuest posited that the “month on month increase in total internet subscriptions could be loosely linked to increased patronage of dual SIM mobile phones in which both SIMs are connected to separate data packages”.

Analysis revealed that average growth rate of internet subscription recorded in Nigeria between January and August 2018 stood at 0.62 percent m/m reaching its peak in May after internet subscription grew by 1.92 from 101.2 million to 103.2 million.

According to NCC recently published data, Nigeria’s internet presence is significantly reliant on upon mobile (GSM) services which as at August accounted for 99.70 percent of total market share by technology.

Others such as Mobile (CDMA), fixed (wired and wireless) and VoIP accounted for 0.1 percent respectively.

FBNQuest explained that

“the FGN targets broadband penetration of 30% by end-2018 (from the current 22%). We understand that the FGN has approved deployment of 18,000 kilometres of fibre cable across specific states. Nigeria currently has about 38,000 kilometres of fibre (32% of total requirement)”.

Meanwhile, information on the number of active subscribers for data (internet) services on each of the licensed service providers utilizing different te chnolo gies show e d that MTN accounted for 38 percent of total subscriptions for the month of August hence maintaining its lead in the last 7 years.

NCC data collated in August revealed that MTN has a market share of 64.1 million subscribers accounting for about 40 percent of total market share in the industry. However, other operators, Airtel (25%), Globacom (25%) and 9mobile previously Etisalat (10%) respectively.

As at the second quarter of the year 2018, the telecommunication industry contributed 10.43 percent to GDP representing the highest in the last 7 years.

Tuesday 25 September 2018

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BUSINESS DAY

Buhari approves N42.68bn to ex-Nigeria PDP heads to court over Osun guber Airways staff, ASUU OWEDE AGBAJILEKE, Abuja

IFEOMA OKEKE

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espite is finally here for the retired ex- workers of the defunct Nigeria Airways Limited as Muhammadu Buhari approves N22.68 billion to be released to them immediately.

The president has also directed that the sum of N20 billion be released immediately to the public universities for revitalisation scheme.

Zainab Ahmed, minister of finance, communicated President Buhari’s directive on Monday at a meeting with the ex- workers of defunct National Carrier and members of the Academic Staff Union of Universities ( ASUU).

The distraught ex- workers staged a protest recently at the entrance gate to the headquarters of Ministry of Finance, a day after resumption of office of the new minister.

Ahmed empathised with the protesting ex- workers, promising to take up the issue.

“Upon my resumption of office as the minister of finance, some pending fiscal issues in the aviation and education sectors were immediately brought to my attention. As such, I took it as a challenge to quickly address key issues regarding the settlement of existing claims in both of these sectors. Consequently upon this, I’m happy to inform you that Mr. President has graciously approved the sum of N22.68 billion and N20 billion to aviation and education sectors respectively, “ she said.

While promising that, the balance of funds of the retired Airways workers would be paid as soon as government finances improved, which she pegged at six months from now, she said the initial amount after liquation came to N78 billion.

“This amount was verified

by Presidential Initiative on Continuous Audit (PICA) and other relevant stakeholders in line with the condition of

service of Nigeria Airways in liquidation and other extant rules and regulation, at t the end of which the sum of N45 billion was agreed as the total retirements benefits of the affected staff.”

On N20 billion approval for public universities, which came in the wake of ASUU’s fresh ultimatum for strike, Ahmed said revitalisation fund to be released to beneficiary universities was in line with administration’s determination to revitalise public universities.

“You may recall that the ASUU signed a Memorandum of Understanding ( MoU) with the federal government of Nigeria sometime in 2013 on the terms and conditions on which the government would improve funding for staff welfare and the provision of critical infrastructure in our public universities.

However, the implementation of this bilateral agreement has had certain challenges due to revenue shortages and other reasons “, she said.

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he Peoples Democratic Party (PDP) has revealed that it will seek legal redress to quash the declaration of the Osun governorship election as inconclusive by the Independent National Electoral Commission (INEC).

The PDP insists that the process was conclusive and that the electoral body lacks the powers to declare the election inconclusive.

A statement on Monday

by Kola Ologbondiyan, said with Adeleke leading at the election, the commission should have brought the exercise to its lawful conclusion by declaring him the winner. The statement, was however, silent on whether it has filed the case at the law court.

“Our electoral law is clear that once an election result is declared, INEC is bound to return a winner. INEC,

in trying to play the card of the defeated All Progressives Congress (APC), contravened the law by refusing to announce a return, even when the declared results have thrown up a winner.

Section 69 of the Electoral Act 2010 (as amended) states that inter-alia ‘in an election to the office of the President or governor whether or not contested and in any contested election to any other elective office, the result shall be ascertained by counting the votes cast for each candidate and subject to the provisions of sections 133, 134 and 179 of the constitution, the candidate that receives the highest number of votes shall be declared elected by the appropriate Returning Officer’.

“Concurrently, Section 179 (2), (a) (b) of the constitution directly prescribes that “a candidate for an election to the office of Governor of a State shall be deemed to have been duly elected

where, there being two or more candidates - (a) he has the highest number of votes cast at the election; and (b) he has not less than onequarter of all the votes cast in each of at least two-thirds of all the local government areas in the State.

“INEC’s action in declaring a concluded election as inconclusive is therefore an annulment, totally duplicitous, constitutionally illegal, ultra-vires and as such null and void.

“The PDP therefore demands the immediate arrest and prosecution of the Osun State governorship election returning officer, Prof. Joseph Fuwape, for succumbing to the pressure of the APC and declaring a decided election as inconclusive.

“We demand that INEC chairman, Mahmood Yakubu immediately summon the courage to do the needful by declaring our candidate, Senator Ademola Adeleke, as winner.

Energy Institute hosts sustainability conference

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he Energy Institute Nigeria is hosting inaugural energy sustainability conference 2018, with a robust list of speakers who will set the benchmark for best practices, debate, trends and solutions for the future of energy in Nigeria.

The conference scheduled for October 11, 2018 at the Oriental Hotel, Lekki, Lagos, has as theme “energy yynamics, current issues and policy options”.

The conference, according to the organisers, it will bring experts and leaders in government and private sector policy makers, regulators, energy consultants and analysts, to discuss and analyse critical issues bordering on energy sustainable for Nigeria.

Some of the speakers expected include Osten

Olorunsola, chairman, Energy Institute Nigeria; Louis Kingham, CEO Energy Institute, Abubakar Sani Sambo, vice chairman, World Energy Council, Ademola Adeyemi-Bero - managing director/CEO First E&P, among others.

The conference will also provide exclusive roundtable networking opportunities chaired by leading organisations with innovative projects and initiatives within the energy sector as well as identifying synergies and forging partnerships in off-grid renewable energy.

Key highlights in the conference will include specialist roundtable discussions on oil and gas, power generation and renewable energy. These are designed to deliver a focused approach providing valuable market insight.

L-R: Taiwo Adeshina, partner, Jackson, Etti & Edu; Koye Edu, managing partner, Jackson, Etti & Edu; Benedict Kanyip, Presiding judge, National Industrial Court - Lagos Division; Igho Orienru, assistant director, Lagos State Internal Revenue Service, and Asamah Kadiri, partner, Jackson, Etti & Edu, during the Jackson, Etti and Edu - fragomen Seminar held in Lagos recently.

UNICEF chides Nigeria for poor project implementation Reps query exclusion of NNPC from Ogoni clean-up exercise CYNTHIA EGBOBOH, Abuja

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he United Nations Children’s Fund (UNICEF) has blamed the setback suffered by the Water, Sanitation and Hygiene (WASH) projects sited around Nigeria on improper projects implementation, amongst other challenges.

Martha Hokonya, a WASH specialist for UNICEF, speaking at the media dialogue on European Union (EU) Niger Delta water project held in Port Harcourt, also listed other factors hindering the WASH projects in Nigeria to include delays in release of counterpart funding by state governments.

She disclosed that “most of the wash projects have been hindered by poor operational and monitoring process, unavailability of affordable models for riverine communities, poor capacity of contractors coupled with poor contact management amongst others”.

Speaking on the efforts made thus far, Hokonya noted that some states like Rivers and Delta states have established the WASH policies and mainstreamed them into the state laws to enhance WASH practices and projects in states.

Zaid Jurji, Chief of WASH for UNICEF, explained that most project in Nigeria have been stopped and funds returned to donors due to lack of required ca-

pacity among contractors.

He said, “When we go for inspection and discover that the projects are not up to standards, what we do is to return the resources back to the donors and such projects are stopped.

This has over the years hampered our efforts to access funds from the donors also”.

Jurji stressed the need for greater focus on the Niger Delta region, acclaimed to be the world third wetland and which is prone to flooding.

According to him” the region is characterised by challenged environment because of flat environment and it possesses a weak operational and maintenance frame work.

KEHINDE AKINTOLA, Abuja

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ohnson Agbonayinma, chairman of House of Representatives SpecialCommittee on Nigeria/USA Parliamentary Relations, has expressed concern over the exclusion of relevant ministries, departments and agencies in the ongoing clean-up of Ogoniland.

According to the terms of the contract, the Nigerian government and IOCs are expected to pay the sum of $1 billion to the contractors in the next five years.

While giving update on the exercise during the preWorld Environment Day, Ibrahim Jubril, minister of environment disclosed that over 400 contractors indicated interest in the reme-

diation exercise in response to the advertisement placed in April 2018.

Agbonayinma (APCEdo), who expressed the concern during a chat with select legislative correspondents in Abuja, urged Federal Government to ensure the inclusion of the Research and Development Department of the Nigeria National Petroleum Corporation (NNPC) without further delay, It is out of place for the ministry to award contracts of that magnitude without including the research and development of NNPC that is the indigenous company.

“If NNPC is incompetent to perform that role, then the Federal Government should as a matter of urgency dissolve the agency because it

is unheard for outsiders who don’t understand our terrain to carry out such an exercise.

“If we must carry out the exercise as it is, after all, contracts have been awarded without our NNPC; then there must be an immediate review of the contracts as Nigerians may not know how it was conducted,” the Edo lawmaker said.

Agbonayinma further observed that “the ministry did not weigh the implications of not including the agency and that is why the House will urgently look into the matter immediately we resume from our recess if nothing is done before then.

“I consider the action a slap on all well-meaning Nigerians to view the action of the Ministry as highly misplaced priority,” he argued.

Tuesday 25 September 2018

BUSINESS DAY

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L-R: Chukwuma Nweke, executive director, operations and IT, United Bank for Africa; Adetoun Dosunmu, head, fixed income, currencies and treasury, FBN Quest Merchant Bank; Samuel Ocheho, president, Financial Market Dealers Association (FMDA); Amine Mati, International Monetary Fund (IMF) country, and Olatoun Akinola, representing the governor of Central Bank of Nigeria (CBN), at the 2018 Financial Market Conference in Lagos.

CBN may review MTN’s penalty, says Stanbic IBTC HOPE MOSES-ASHIKE

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he Central Bank of Nigeria (CBN) has written to advise Stanbic IBTC that it will examine new submissions and documentations made by the bank, and where justified, will review its earlier decision on the penalty it imposed.

The CBN also says Stanbic will not be debited for $2.6 billion, which was the lender’s portion of the $8.1b the CBN said MTN illegally transferred out the country, Stanbic IBTC said in a statement to the Nigerian Stock Exchange on Monday.

This is coming six days after the CBN said it was working with the Deposit Money Banks (DMBs|) and the MTN Nigeria to arrive at an equitable solution over sanctions recently imposed on four banks.

Ortom directs immediate disbursement of Paris Club refund Benjamin Agesan

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overnor Samuel Ortom has directed the state Ministry of Finance to immediately commence payment of salary arrears, pensions and gratuity from the Paris Club refund recently received by the state.

The Governor made known the decision today at the burial of Sabastine Dewua at Tse-Awuna, Mbachohon, Gwer West Local Government Area of Benue State.

He stated that though the constitution of the Paris Club disbursement committee was done with good intentions, owing to public concerns, he had decided to suspend the committee to pave the way for speedy payment of the funds to workers and retirees.

The apex bank had in August 29, 2018 imposed heavy sanctions totaling N5.87 billion on four banks under its regulatory purview and asked same to refund the sum of $8.134 billion for what it described as ‘flagrant violation of extant laws and regulations of the Federal Republic of Nigeria, including the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, 1995 of the Federal Republic of Nigeria and the Foreign Exchange Manual, 2006’.

Isaac Okorafor, director, corporate communications, CBN, said in a statement last

week that the recent sanctions on the banks arose due to irregularities with respect to repatriations made on behalf of MTN Nigeria Limited and were not in any way designed to restrict access to investor returns.

He said CBN would continue to welcome foreign investments and investors. “In response to the recent regulatory actions, the banks and MTN are engaging the CBN and have provided additional information which is currently being reviewed with a view to arriving at an equitable resolution.,” he said.

Tuesday 25 September 2018

Tuesday 25 September 2018

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L-R: Tinuade Awe, executive director, regulations, Nigerian Stock Exchange (NSE); Abi Ayida, chairman, Berger Paints Nigeria Plc, and Peter Folikwe, MD/ CEO, during the Berger Paints facts behind the figures at the exchange in Lagos, yesterday.

Pic by Olawale Amoo

Why we are investing in Nigeria—GE OLUSOLA BELLO

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he General Electricity (GE) has explained why it is investing in the Nigerian economy despite misgivings and challenges.

Alex Dimitrief, senior vice president at GE and current president & CEO of GE’s Global Growth Organisation, who disclosed this in an exclusive interview with BusinessDay, said the company believed that it would succeed in the Nigerian environment.

“We believe that the people of Nigeria are going to require the types of technology GE is able to offer, and we are confident that the environment would be such that this would be a positive investment for GE,” he said.

Dimitrief thinks that should be the watchword for a company like GE that has been around for 125 years.

He said the company was

thinking about the next 125 years. “On that horizon, our business plans aren’t targeted at the next quarter, or for the next year, but they are targeted at the long-term future of the country”.

Asked whether the company would facilitate financing of some of the projects it was planning to do in the country, he said, “I think we are actively looking at a number of power and healthcare development projects. We are working and coordinating potential capital market access for our teams, something that I think is probably going to be pertinent to how a project is done in Nigeria in the next two to three years.”

On the challenges the company is facing generally in emerging markets such as Nigeria, the GE boss stated that generally what they noticed around the world was a gap between demand for infrastructure and the ability to finance the infrastructure

development. ‘’As we look to drive investments downwards into the emerging markets, investors are increasingly looking for projects that are bankable, that are financeable, that are well organised, that they have the confidence to invest in. They also want a system with the rule of law, that is consistent, reliable, predictable and something that they believe they can count on, that won’t change if there’s a change in government that will put their investment in jeopardy. So, I really think making the emerging markets a destination of choice for investments is the biggest challenge that we see.” He said some people estimated that these infrastructure gap was in trillions of dollars a year, adding that what they had focused on at GE was developing its team to help customers access the capital markets.

He said the company

often did this through relationships with private banks and export credit agencies around the world— Europe, Canada, the US and elsewhere—to try to help development in the emerging markets.

“But I would say that closing that financing gap is the biggest challenge that emerging markets have right now and it something that we are eager to help our customers with. We have a worldwide team that has developed expertise in helping with access to capital and that is something that we are eager to bring to Nigeria and other parts of the world.”

On the outcome of his meeting with Nigerian officers he met recently, he said, the assurance he had was that if the company was competitive, bring the best of its science, technology and continue to deliver outcomes, it would have a fair opportunity to compete for business.

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BUSINESS DAY

Egina FPSO: LADOL, Samsung in legal dispute over equity holding in SHI MCI …Workers protest, want FG intervention AMAKA ANAGOR-EWUZIE

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arely four weeks after the Egina Floating, Production, Supply and Offloading (FPSO) vessel departed from the Lagos Deep Offshore Logistics (LADOL) Base, the dispute between LADOL and the Samsung Heavy Industry (SHI) has taken a new dimension as both now face legal battle over the ownership of SHI MCI Free Zone Enterprise, a joint venture set up for the execution of Egina FPSO project.

The management of LADOL said it had issued an interlocutory application for injunction to restrain Samsung from parading itself as the owner of 70 percent of SHI MCI FZE. LADOL said the injunction also restrained Samsung from selling or dealing with or disposing of the shares in SHI MCI FZE pending the hearing and determination of the substantive proceedings. Speaking to newsmen in Lagos, Fidelis Oditah, counsel to LADOL and LADOL Free Zone, accused Samsung of committing a fraud by taking LADOL’s equity in SHI MCI FZE and giving itself 70 percent ownership of the fabrication and integration facility approved by the federal government of Nigeria.

Oditah, who said that SHI MCI FZE had no valid or subsisting sublease, added that SHI MCI FZE was not entitled to a renewal of its annual operating licence.

On the operating licence, he said SHI MCI FZE did not satisfy the condition of regulation 41 of the LADOL Free zone regulations 2016, stipulating, among other things, payment of licence fee; provision of all information, document and

returns required by zone management; payment of all outstanding amounts and fees due to zone management.

“Contrary to Samsung’s accusations in the media, there is no court order restraining the free zone management from doing anything. The temporary restraining order granted by the court on 31st July 2018 was discharged by the court on 14 August 2018.

“Secondly, even if there is such a restraining order, LADOL zone management has not violated SHI MCI FZE’s operating licence. The operating licence, (both annual and the two-month extension), expired in June and early September, 2018 respectively by effluxion of time in accordance with their terms and without any intervention by LADOL management,” he said.

Meanwhile workers of Samsung Heavy Industries (SHI) on Monday staged a peaceful protest to the Lagos office of the Department of Petroleum Resources (DPR) seeking the intervention of the Federal government in the legal face-off between LADOL and SHI MCI FZE. Samuel Samidotun, assistant manager, general affairs department, Samsung Heavy Industries, who spoke on behalf of the staff, called on the management of DPR as the regulator in the oil and gas sector to intervene in the matter so as to save their jobs and meet family needs.

“We note that LADOL’s actions threaten Samsung continuous operation in the zone and ultimately our own survival as we are in serious danger of losing our jobs if this situation is not arrested promptly and legally restored to SHI-MCI-FZE”.

NAPTIP investigates death of 400-level UNIBEN undergraduate in Ghana FG to foreclose licences of gas flaring companies by 2020—Kachikwu IDRIS UMAR MOMOH, Benin

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he National Agency for the Prohibition of Traffic in Persons (NAPTIP) has disclosed that it is investigating the death of a 400-level Zoology student of the University of Benin in Ghana.

Nduka Nwanwenne, NAPTIP Benin zonal commander, gave the hint during a media awareness campaign with the theme, ‘Increasing Awareness on the Averse Effect of Human Trafficking on Target Population’, organised by Name Foundation in partnership with Market Development Programme in the Nigeria Delta (MADE) in Benin-City.

Nwanwenne, who did not give the name of the

student, said the student abandoned his education in Nigeria and travelled to Ghana where he was killed.

“There is a case we are investigating now in which a 400-level student of Zoology in University of Benin abandoned his education and traveled to Ghana and he was killed there. We learnt that it was the mother that encouraged him to go to Ghana,” he said.

He also disclosed that five pregnant girls rescued from sexual exploitation by their sponsor were currently in the custody of the agency.

He further explained that a lot of people could not be accounted for as result of illegal migration, as some parents who had not heard from their wards were

seen in churches with their pictures praying for their safe return to the country.

The zonal commander observed that some of the children might have died in the Mediterranean Sea. He added that the agency had convicted 70 traffickers and rescued 3,000 victims in Edo and Delta states since the zone was established, stressing that pressure from parents and ignorance was largely responsible for the un-abating human trafficking and illegal migration in the country.

“The desire to get rich quick, better life, among others, is making parents mount pressure on children to embark on illegal migration. It is not the responsibility of children of 14, 15 and 16 years to make money for the family.

HARRISON EDEH, Abuja

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he Federal Government will take tougher measures to stamp out gas flaring in the country by 2020. Emmanuel Ibeh Kachikwu, minister of state for petroleum resources, said the government would foreclose licences of gas companies still embarking on flaring by 2020.

Kachikwu, who gave the directive on Monday in Abuja at the Gas Aggregation Company Nigeria Limited event themed, ‘Highlighting the Gains and Future of Domestic Gas Market’, said the idea of companies paying for the flared gas would not suffice.

“At the renewal of their licenses, we would be making greater demands of the in-

frastructure they have built in addressing the gas flaring concerns. It is going to be a key determinant factor, “Kachikwu said.

Speaking further, he directed gas companies to seek proper ways of adding value to the flared gas through the opportunities provided by the Nigeria Gas Flare Commercialisation programme, rather than resorting to easy way out by paying of fines.

“The reason why we got the Nigeria Gas Flare Commercialisation Programme is to ensure third parties participate in gas commercialisation and to enable us reduce significantly the amount of gas flare and taking hold of flared gas and developing it.”

While acknowledging the measure of progress recorded by complying companies, Kachikwu directed noncomplying gas companies to act accordingly.

On domestic Gas supply, the minister directed various companies in the domestic oil and gas sector business to ensure increased valueaddition specifically in processing noting that, “The era of harvesting and exporting raw materials in raw form is over since there are lots of jobs to be created along the value chain.” He further added that the processing of raw materials would be given greater priority, while also stating that issues bothering on gas pricing would be addressed to grow investors’ confidence.

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Outsourcing different from casualisation— ICS CEO Customs intercepts 11-truck load of ODINAKA ANUDU

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eter Akindeju, managing director/ CEO of ICS Outsourcing (Nigeria) Limited, has said that outsourcing is not the same as casualisation as understood in some quarters, explaining that outsourced personnel enjoy all the benefits of permanent staff members.

Akindeju, who spoke in Lagos while unveiling a new logo and name of ICS Outsourcing (Nigeria) Limited, said the organisation had come a long way in redefining the trajectory of the outsourcing industry.

“We continue to explain that we do not do casualisation. Every employee outsourced is a full employee, entitled to medical insurance, contributory pension and annual leave. They also pay their taxes. All the benefits that you expect a fulltime employee to enjoy is what they enjoy. They all

receive full benefits,” he said.

Akindeju explained that many outsourced personnel, in many instances, earned more than permanent staff members, stating that what often determined salary was the perceived value of the personnel.

The CEO stated that some charlatans had infiltrated the industry, conducting the business in an unprofessional way, but added that ICS was different, having won many awards for statutory compliance.

Akindeju said the 24-year-old firm had impacted the lives of over 40,000 Nigerians directly and indirectly.

He said the eagle in the company’s new logo was a symbol of rebirth and renewal as the eagle often re-grew its feathers and talons in order to fly high and catch its foods.

“There is a lesson in that for every organisation and business entity. It is impor-

UBA emerges most innovative digital Bank

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BA Plc has once again reaffirmed its position as a leading global brand with its recent recognition as the ‘Most innovative Digital Bank’ of the year, in the digital category of the prestigious International Finance awards organised by the International Finance Magazine.

This further places UBA ahead of its peers in the digital banking space as it continues to demonstrates leadership, innovation, and momentum in the markets they operate.

In selecting its recipients, International Finance Awards, recognises industry talent, leadership skills, industry net worth and capability on an international platform. After careful consideration of nominations by a qualified research team, winners are declared on the strength of their application and past accomplishments.

The International Finance Awards is regarded as the industry standard for banking excellence, recognising and celebrating the achievements of individuals and financial institutions within the global banking sector.

Speaking on the recent feat, Group Head, Online Banking, IT Online Banking Services, Austine Abolusoro of UBA, said: “We are delighted and proud to be recognised as the 2018 most innovative bank of the Year. This once again is an affirmation of our recent

investment in cutting edge technology, one of which gave birth to Leo, the chat banker that has disrupted banking across Africa”.

“UBA’s vision has always been and will remain, dominating Africa’s digital banking space. Our resolve is to provide unparalleled experience across all its channels,” Abolusoro said.

He further said: “With this addition to our growing list of laurels, customers can be assured that we would not relent in our pursuit of excellent service delivery that puts them first as we will intensify our commitment towards continuously setting benchmarks for the industry”.

International Finance Magazine, is a premium financial and business analysis magazine published by UK’s International Finance Publications Ltd. UBA is one of Africa’s leading banks with operations in 20 African countries and in London and New York, with presence in Paris.

Adjudged to be at the forefront of innovation and convenient banking, UBA is one of the first financial services institutions on the continent to deploy Finacle 10x, a new information technology platform that boosts its services and electronic banking channels.

Today, UBA provides banking services to more than 15 million customers globally, through diverse channels and over a thousand touch points.

tant to renew or rebrand ourselves from time to time in order to remain relevant and valuable to our customers.

“Secondly, the time is ripe for us to deliberately distinguish ourselves from the pack. As we move into the future, it is important for us to clear every possible doubt about who we are and what we represent.

“You will find that our new brand depicts a ‘new contemporary us’. It also shows that our core has not changed. We hold firmly to our core-values.

These values have seen us through the last 24 years and we intend to continue to stay true to them. However, we are b, positioning ourselves into the future.

This is the New ICS.” He said over the years, the firm had been able to outsource for a number of financial institutions, manufacturing companies, Fast-Moving Consumer Goods (FMCGs) and hospitality firms, among others.

smuggled foreign rice in South-West AMAKA ANAGOR-EWUZIE

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he Nigeria Customs Service (NCS) Strike Force Unit on Monday said it has seized 11-truck load of smuggled foreign parboiled rice in the SouthWest zone.

The force, which also intercepted other contraband goods worth over N415 million, is an ad-hoc unit set-up by the comptrollergeneral of the Customs to complement the activities of the border commands and the Federal Operations Units in suppressing smuggling.

The seizures included vegetable oil, used clothes, frozen poultry products, unprocessed firewood, sugar and vehicles of different brands.

Speaking on the arrest, Abdullahi Kirawa, national coordinator of the Strike

Force, said the seizures were made from August 11 to September 18, 2018, enabled by credible intelligence gathered by the Customs Intelligent Unit (CIU).

He listed the seized items to include used clothing; 640 bales of shoes in 1x40- foot container valued at N32,000,000; 18x20-foot containers and 3x40-foot containers of unprocessed firewood worth N144,000,000; 2x20foot containers of wet blue worth N123,727,500; 59 bags of sugar worth N590,000.

He further disclosed that four cars worth N6,000,000; two trucks worth N6,000,000, and one Mercedenz Bus worth N1,500,000 were as well intercepted.

“Other items include 45 cartons of frozen poultry worth N225,000; vegetable oil in 26 kegs by 10 litres value at N130,000 and 14

kegs by 25 litres value at N140,000.”

“The sized used motor vehicles were Mazda 323 car worth N750,000; Toyota Hilux N11,500,000; Toyota Avensis car worth N1,800,000; Lexus ES 350 value at N2,500,000; Toyota Avenza worth N5,500,000 and Ford Transit Bus loaded with contraband goods value at N1,750,000 and 6,669 bags of rice 50kg worth N90, 000,000 were all seized,” he added.

He warned that rice being smuggling into the country was less nutritious compared with the locally produced rice, urging Nigerians to patronised locally made products.

Kirawa, who said that NCS and its men would not relent in fighting smuggling, added that the Service was working around-the-clock to ensure that illicit trade would not thrive.

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Sky deal opens new horizons for Comcast

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World Business Newspaper

Row brews over Labour’s 10% shares plan for UK workers

Opponents call it draconian but supporters say it represents a small amount JIM PICKARD

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abour has set out a radical proposal that any company in Britain with more than 250 employees will have to hand over 10 per cent of the company— albeit gradually — to its staff.

The policy takes the concept of “employee ownership” and introduces a compulsory element so that no London-listed company would be exempt, at least in theory.

If Labour’s sums add up, it could mean an extra £500 a year in the pockets of some 10.7m workers at larger companies by the end of a decade.

The Institute of Directors has called it “draconian”, although it will be seen as a powerful fillip by the trade unions.

John McDonnell, shadow chancellor, will tell the Labour conference in Liverpool on Monday that the policy will improve Britain’s flagging productivity by incentivising millions of workers. But questions remain about how the idea will work in practice.

How would the policy work?

Every company with more than 250 staff would have to set up an “Inclusive Ownership Fund” owning 10 per cent of the equity. That would be built up gradually with management handing over 1 per cent a year for 10 years.

Workers would not be able to buy or sell the shares but would benefit from dividends paid out by the company, up to a maximum of £500 per worker. The IOF, run by a board of trustees made up of workers, would also have voting rights like other shareholders.

The model for the idea, inspired by the IPPR think-tank and the Cooperative party, would be an “assetlock” mechanism as used by John Lewis and similar employee-owned enterprises.

One critical aspect of the policy is that the government would collect any dividend payments above the £500-a-head threshold, diverting them towards the public coffers. That would represent more than £2bn a year after five years, Labour calculates. “Dividend payments made through IOFs above the cap will be placed into the national fund, to allow risk-sharing and redistribution of the benefits of wealth,” it said on Sunday.

“Our estimates for its size, using the same database, in the final year of the

Labour government, are £2.1bn.”

How has business reacted?

The CBI warned that the policy could prompt some investors to “pack their bags”.

Business groups see the policy as part of a wider obtrusive approach by Labour, which would also increase corporation tax, nationalise various utility companies and extend full employment rights to all workers.

Stephen Martin, director-general of the IoD, said the policy could cause farreaching damage to the UK economy.

“To effectively force companies to transfer 10 per cent of company ownership from existing shareholders to employees is far too draconian,” he said. “It could have a negative effect on business investment and business formation in the UK, and undermine the functioning of UK capital markets.”

What are the potential benefits of the scheme?

Mr McDonnell argues that the policy would give a generous boost to the pay of some of the country’s hardpressed workers after a near-decade of wage freezes.

It would also incentivise them by making them feel that they have a stake in the success of their company, he says. “Workers, who create the wealth of a company, should share in its ownership and, yes, in the returns that it makes,” he will say on Monday.

“The evidence shows that employee ownership increases a company’s productivity and encourages longterm thinking.”

The shadow chancellor believes the policy would benefit up to 10.7m people who work in larger corporations. In addition, smaller companies will be allowed to set up IOFs voluntarily.

Labour calculates that the policy will be hugely popular with ordinary voters who are angry at unfairness in society — and the way that the wealthy have become richer since the financial crash, in part because of low interest rates.

But how would it work in practice?

It is in the practical implementation of the policy that certain pitfalls become immediately apparent.

The shadow Treasury team admits that private, unlisted companies could not be compelled to hand out dividends to workers. In theory that could incentivise public companies to delist from the stock market.

Randgold and Barrick agree $18bn gold mining deal Tie-up between Canadian and UK-listed rivals will create the world’s biggest gold miner NEIL HUME AND HENRY SANDERSON

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anada’s Barrick Gold is to combine with Randgold Resources, its UK-listed rival, in an $18bn deal that will create the world’s biggest gold miner.

The new company will produce more than 6.5m ounces of gold a year, eclipsing its nearest competitor,

US-listed Newmont.

The group will be listed in Toronto and New York, meaning that London will lose its biggest gold stock.

Randgold shareholders will own 33.4 per cent of the combined company, with the rest controlled by investors in Toronto-based Barrick.

The all-share agreed deal values Continues on page A14

Shadow chancellor John McDonnell speaks at an event on ending austerity at the Labour conference in Liverpool © Charlie Bibby/FT

Oil climbs to 4-year high close to $81 a barrel Producers boost prices by deciding against output increases sought by Trump ANJLI RAVAL AND EDWARD WHITE

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il prices rose to fresh four-year highs near $81 a barrel after global producers decided against further output increases despite demands from US President Donald Trump for renewed action to cool prices.

Saudi Arabia, Russia and their allies inside and outside the Opec cartel met in Algeria on Sunday to discuss output policy as US sanctions on Iran’s energy sector due to come into effect in November are already beginning to hit the country’s oil exports.

The countries declined to announce additional increases to production beyond what had been agreed in June.

Brent crude increased $2.02 to $80.82 a barrel by mid-morning in London — the highest since late 2014 when oil prices were falling as increased production outpaced demand and sent the energy sector into a tailspin.

“This is the oil market’s response

to the ‘OPEC+’ group’s refusal to step up its oil production,” said Carsten Fritsch at Commerzbank.

Buyers are cutting their purchases of Iranian barrels for fear of financial penalties from the US. This has sent crude higher and spurred Mr Trump to push Saudi Arabia and its Opec allies to raise production to keep prices in check.

“The OPEC monopoly must get prices down!” Mr Trump wrote on Twitter on Thursday. US officials are worried about the impact global oil market dynamics may have on domestic fuel prices ahead of midterm elections in November.

In late 2016, global producers agreed to curb their production by 1.8m barrels a day to bring an oversupplied market back into balance.

But countries cut their output by far greater levels amid unexpected falls in Venezuelan output and disruptions elsewhere.

This led countries to agree to raise production in June to account for the extra cuts and bring output in line with the terms of the original pact. This decision was upheld on

Sunday, with ministers saying no further increases beyond this level were required at this time.

Mr Falih said in June that countries could rapidly add 1m b/d of production into the market. But this has yet to fully materialise, prompting oil traders and energy sector analysts to question how much big producer nations could raise supply to compensate for the losses from Iran.

Khalid Al Falih, Saudi Arabia’s energy minister, said that he believed the oil market was “adequately supplied”. Despite rising prices, he said, buyers did not require much greater levels of production at this time.

“The biggest issue is not with the producing countries, it’s with the refiners, it’s with the demand,” Mr Falih said. But he added that output policy needed to be “responsive” in the event of any supply shortages or market surprises.

It is still unclear as to how severe the drop in Iranian exports will be, adding to bullish sentiment in the oil market. They have already fallen more than 500,000 b/d since May to below 2m b/d.

Casino and Carrefour in dispute over merger claim Casino statement on approach by rival French supermarket chain contradicted by Carrefour HARRIET AGNEW

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rench retailer Casino has become embroiled in a war of words with Carrefour after it claimed it had rejected an approach from its larger rival over a possible tie-up.

Casino said on Sunday night that it had been “contacted over the last few days with a view to a possible combination”. It said its board of directors met on Sunday and “unanimously” rejected the approach.

But Casino’s statement was contradicted by Carrefour, the world’s second-largest retailer by revenues.

In a contrasting separate statement on Monday morning, Carrefour said: “Carrefour denies having solicited Casino and is surprised that a merger proposal that does not exist has been submitted to Casino’s board of directors.”

It added: “Focused on the implementation of its 2022 transformation plan, Carrefour is reviewing its legal options in order to stop these unacceptable innuendos.”

A Casino-Carrefour tie-up would have combined two of the biggest

names in the highly competitive French food retail market, where players are seeking to eke out profits amid a multiyear price war and ramp up their e-commerce offerings to resist the march of Amazon.

A spokesperson for Casino said the retailer’s chief executive Jean-Charles Naouri and his counterpart at Carrefour Alexandre Bompard met in Paris on September 12. After that meeting, the chief executives had “designated counsel” to advise them. Carrefour declined to comment on this statement.

According to two people familiar with the situation, the meeting between the two executives was organised by Alain Minc, a businessman and political adviser, and took place at Mr Minc’s offices in Paris. Mr Minc did not immediately respond to a request for comment.

Casino’s share price has plummeted this year, reflecting investor concerns over its high levels of debt and the structural complexity with which its chief executive and controlling shareholder Jean-Charles Naouri has built the group.

Just over a week ago, Casino’s parent company Rallye announced it had secured a €500m credit line from French banks to strengthen its financial position, pushing Rallye’s shares up 7 per cent. Casino’s shares rallied slightly but are still down almost a third this year.

Speaking at the FT Future of Retail summit in London on Thursday, Régis Schultz, chief executive of Casino’s upmarket urban brand Monoprix that is responsible for half of its profits in France, blamed bearish analysts and hedge funds who are shorting the stock for the big moves in Casino’s share price.

Mr Schultz said: “[Hedge funds] want to make short-term money, that’s it. It’s speculation.”

He added: “We have no problem of access to funding.”

Casino’s statement on Sunday said: “Carrefour’s approach occurs at a time when the market for Casino’s securities has been subjected to co-ordinated downward speculative manipulations of an unprecedented scale over the course of the past several months.”

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Randgold and Barrick agree $18bn gold ...

Saudi Aramco CEO defends Sabic deal

Continued from page A13 each Randgold share at around £49, its closing price on Friday night. On Monday morning the shares opened up 3.8 per cent at £51.12.

Barrick is offering 6.128 of its shares for each Randgold share and has agreed to a $300m break fee.

Shares in Barrick closed at C$13.52 on Friday.

The deal brings together two of the biggest personalities in the gold mining industry: John Thornton, the former Goldman Sachs banker who has run Barrick since 2014, and Mark Bristow, the pugnacious South African executive who founded Randgold in 1995.

How well the two men work together will determine the success of the deal; Mr Bristow will be chief executive and run day-to-day operations, while Mr Thornton will remain as executive chairman, directing strategy.

Analysts at Investec raised doubts about how successful this arrangement will be in practice: “We will always have reservations when ‘alpha’ personalities take joint leadership of a company.”

Barrick and Randgold have been discussing a possible combination for the past three years, but the talks intensified over the past nine months with the two executives spending 30 days together thinking through issues and problems.

The enlarged company will control some of the world’s biggest and most profitable gold mines, including Barrick’s Cortez and Goldstrike operations in Nevada and Randgold’s Kabli mine in the Democratic Republic of Congo and the LouloGounkoto mine in Mali.

Mr Thornton said: “Our overriding measure of success will be the returns we generate and not the number of ounces we produce, balancing boldness and prudence to deliver consistent and growing returns to our fellow owners, a truly simple but radical and achievable concept,” he said.

“There are no premiums in the merger because we strongly believe in the opportunity to add significant value for our shareholders from the disciplined management of our combined asset base and a focus on truly profitable growth.”

As part of the deal, China’s Shandong Gold, one of the country’s biggest gold producers, has agreed to buy $300m of shares in Barrick.

Barrick will also buy the equivalent amount of shares in Shandong Mining, a listed subsidiary of Shandong Gold, Barrick said.

The deal follows a dismal year for the gold mining sector, which has struggled to attract the interest of investors.

Shares in Barrick have dropped 25 per cent amid criticism of its strategy, while Randgold has fallen 34 per cent as it has struggled with a number of operational issues, including a strike at one of its biggest mines.

That is a worse performance than the gold price, which is down by 9 per cent year-to-date to $1,206 a troy ounce, hit by a stronger US dollar.

Analysts gave the deal a cautious welcome, noting the potential upside but also the lack of premium for Randgold investors.

“While this does not offer a premium, the production upside of the combined group under the leadership of Mr Bristow (who is likely to be relentless in terms of cost reductions), is likely to create arguably the go-to gold businesses globally,” said Michael Stoner, analyst at Berenberg.

Tuesday 25 September 2018

Amin Nasser says acquisition will diversify oil giant’s revenues and curb carbon footprint ED CROOKS AND ANJLI RAVAL

S Comcast was attracted to Sky’s premium content, such as Succession, the story of a media mogul and his warring family

Sky deal opens new horizons for Comcast US cable behemoth that lacked overseas presence has bought itself a powerful European launch pad MATTHEW GARRAHAN

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t was shortly after the July 4 holiday in the US last year when executives at Comcast first began thinking about bidding for Sky. Brian Roberts, Comcast’s chief executive, knew that the company built by his late father Ralph, needed to bolster its presence abroad. Comcast is the largest cable operator and provider of broadband services in the US but lacks international exposure. Its core US market is maturing: payTV penetration is very high, unlike in Europe, and “cord-cutting” — the cancellation of cable and satellite subscriptions — has disrupted business models.

Sky, one of the few providers of pay-TV and broadband with scale across Europe, looked like a good bet. The company ushered in the pay-TV era in the UK when it was launched almost 30 years ago by Rupert Murdoch on “a wing and a prayer” from a draughty industrial park on the outskirts of west London.Its early financial troubles almost bankrupted the media mogul. But, eventually, its mix of exclusive sports rights and movies, and later additions such as broadband and mobile services, turned Sky into one of Britain’s most valuable companies. Its money has revolutionised the Premier League, turning it into a

global brand, while its technological innovation has won it admirers across the Atlantic. European expansion, and the merger with Sky operations in Italy and Germany have given it a solid presence on the continent.

Sky’s growth in recent years won it plenty of admirers and when Mr Roberts and his colleagues first began thinking about buying Sky in the summer of 2017 the company was already the focus of a bid from Mr Murdoch’s 21st Century Fox group. Having failed years earlier in a first bid to acquire all of Sky, withdrawing amid outrage sparked by the tabloid phone hacking scandal, Mr Murdoch was trying for a final time to regain control of the company he started in 1989.

But his bid had become mired in regulatory troubles. The Comcast management team wondered in that summer of 2017 whether their company could become an alternative buyer.

It took several months for this early interest to crystallise.

The catalyst came in November, when Mr Murdoch stunned the media world with a plan to break up his entertainment empire, selling his film studio, cable channels – and 39 per cent stake in Sky – to Walt Disney. Mr Roberts, a competitive squash player who, as a younger man,

won five medals at the Maccabiah Games, often known as the Jewish Olympics, sprang into action. He mounted a rival bid for the Fox assets before eventually withdrawing to concentrate solely on Sky. That persistence paid off on Saturday afternoon when, after three rounds of bidding, Comcast was declared the winner of a Sky auction, beating a rival Disney-backed bid from Fox. Mr Roberts and his lieutenants spent Saturday in a conference room at The Stafford, a five-star hotel a short walk from the offices of Robey Warshaw, the boutique investment bank that has been advising Comcast.

The auction was managed by the Takeover Panel, the UK body that regulates public dealmaking in the UK: it intervened in line with rules that were established to prevent takeovers dragging on indefinitely.

It received the bids from Comcast and Disney-Fox via a secure web portal — but for the first two rounds there was little action, with the rivals offering increases of only “pennies” on the £14.75-a-share price that was Comcast’s leading offer going into the auction, according to a person briefed on the process. “They wanted to keep their powder dry for the final round,” another person close to the process said.

Second woman accuses Brett Kavanaugh of sexual misconduct Trump’s Supreme Court plans hit by new obstacle ahead of critical showdown this week DEMETRI SEVASTOPULO

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rett Kavanaugh, US president Donald Trump’s nominee for the Supreme Court, has again been accused of sexual misconduct, in a dramatic development only four days before the Senate holds a high-stakes hearing into an earlier allegation of attempted sexual assault.

The New Yorker magazine on Sunday reported that Deborah Ramirez, a woman who attended Yale University at the same time as Mr Kavanaugh, had accused the appeals court judge of inappropriate behaviour in their first year at college. The new allegation puts a fresh obstacle in the way of the attempt

by Mr Trump and the Republicans to shift the court to the right.

Ms Ramirez’s decision to go public with the allegations came after the Senate Judiciary Committee had reached a deal with Christine

Blasey Ford, a California professor who has accused Mr Kavanaugh of an attempted sexual assault, to appear before the committee on the same day that he will testify before the panel about the allegations.

Mr Kavanaugh has denied the accusations.

According to the New Yorker story — which was co-authored

by Ronan Farrow who revealed the #MeToo accusations against Hollywood producer Harvey Weinstein — Ms Ramirez alleges that Mr Kavanaugh exposed himself and “thrust his penis in her face” at a dormitory party in their first year at Yale.

In a statement released by the White House, which has accused the Democrats of running a “coordinated smear campaign” against the judge, Mr Kavanaugh denied the charge, saying the “alleged event from 35 years ago did not happen”.

“The people who knew me then

know that this did not happen, and have said so. This is a smear, plain and simple,” he said. “I look forward to testifying on Thursday about the truth, and defending my good name.”

Democrats immediately called for an FBI investigation into both sets of allegations. Dianne Feinstein, the top Democrat on the Senate Judiciary Committee, asked Chuck Grassley, the Republican chairman of the panel, to postpone all proceedings related to Mr Kavanaugh’s nomination, saying it was “time to set politics aside”.

The new allegations dramatically raised the stakes for the hearings on Thursday, when Ms Ford and Mr Kavanaugh are set to appear before the committee. The outcome could determine whether Mr Trump will succeed in placing a second conservative judge on the court following the appointment of Neil Gorsuch last year.

audi Aramco’s planned acquisition of a majority stake in Sabic, the Saudi statecontrolled chemicals and materials group, is central to its plans to diversify its revenues and prepare for tighter constraints on greenhouse gas emissions, its chief executive says.

Amin Nasser, who has been chief executive of the Saudi national energy company since 2015, told the Financial Times that talks were at an “early stage”, but that the Sabic deal would help accelerate Saudi Aramco’s plans to develop its chemicals operations.

“Sabic has a strong market position, [and is] vertically integrated: there’s a lot of synergy with Saudi Aramco,” Mr Nasser said. Though some senior executives at the group have questioned how it adds value, he said: “It’s a very strategically [good] fit with what we are aspiring to be, which is [to be] deeper in the downstream sector.”

Mr Nasser said the Saudi government was still committed to a stock market flotation for Saudi Aramco, but that any initial public offering would have to wait until after the acquisition and integration of Sabic, which would “take some time”.

The Saudi Royal Court has instructed Saudi Aramco to acquire the 70 per cent stake in Sabic owned by the kingdom’s sovereign wealth fund, potentially raising $70bn – the value of the stake at the company’s current share price – for the fund at a time when it is scrambling to boost its coffers. The Public Investment Fund was due to receive proceeds from the IPO of Saudi Aramco, which has been indefinitely delayed.

Selling its Sabic stake would allow the PIF to raise cash quickly, with its handouts from the government having fallen and its big-ticket investments yet to yield returns. But some executives at Saudi Aramco and advisers to the energy ministry have said the deal would mean a change from Saudi Aramco’s plans to invest in speciality chemicals and expand abroad, and suggested it was unclear how its operations would be integrated.

Mr Nasser told the Financial Times that negotiations over the price had not yet begun. “We’re not at that stage: we’re still doing due diligence,” he said. “[And] you need to go through antitrust in so many countries. So … all of that process will take some time.”

However, he suggested the Sabic deal would be an important strategic move for Saudi Aramco in the face of slower growth in demand for oilbased transport fuels and tighter curbs on greenhouse gas emissions.

Saudi Aramco was “not a major player yet” in chemicals, Mr Nasser said, and like other large oil companies including ExxonMobil and Royal Dutch Shell, it wants to build up its operations in that industry.

He said he expected the market for chemicals to grow by about 3 per cent per year on average, while the market for transport fuels was growing at about half that pace, and the rate of increase was slowing.

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French deficit to rise as economic growth slows DAVID KEOHANE AND JANINA CONBOYE

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rance’s budget deficit will temporarily increase again next year due to slowing growth and a changing tax regime, tightening president Emmanuel Macron’s room for manoeuvre as he pushes for European reforms.

In Mr Macron’s first budget since the country’s deficit finally fell below the European Union’s 3 per cent spending rules earlier this year, France said it would show a deficit of 2.8 per cent next year compared to 2.6 per cent this year.

French finance minister Bruno Le Maire was at pains to explain the increase was due to exceptional items – including a change in how income tax is collected. Without that charge, said Mr Le Maire, the budget deficit in 2019 would be 1.9 per cent.

Mr Le Maire pledged to con-

tinue in the same vein: “I want to say … our economic results are unsatisfactory compared to our European neighbours. And we certainly do not intend to stop there.”

It “is essential to continue the effort to reduce the public debt, which is a slow poison for our economy and a slow poison for future generations,” added French budget minister Gérald Darmanin.

The budget for next year will see household tax bills reduced by €6bn while business taxes will fall by close to €20bn, as Mr Macron looks to increase purchasing power in the face of falling personal popularity and accusations that his reforms are not helping France’s common man.

However, economists were quick to point out that with the underlying deficit falling the overall budget was tightening, due in part to increases on fuel and tobacco, a freeze on pensions and state job cuts.

Trade war casts shadow over tech manufacturers Taiwan electronics groups forced to consider quitting China to escape Trump’s tariffs KATHRIN HILLE

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amilies in Taipei celebrated the annual mid-autumn harvest festival on Monday by watching the full moon over riverside barbecues on Monday. But for several managers at electronics company Wistron, the holiday was off.

“We are running models on the cost of reopening a motherboard production line in Taiwan,” said one. “We have Trump to thank for that.”

Wistron makes the printed circuit boards on which the key electronic components in any device are mounted and connected with each other. Like scores of other Taiwanese manufacturers, it moved most of its lower-technology and labour-intensive production to China beginning in the 1990s. These components are then assembled there or in other countries and built into computers, servers and smartphones.

The tech sector was largely spared in the latest round of Mr Trump’s trade war with China, which saw Washington impose 10 per cent tariffs on about $200bn worth of Chinese imports last week. But the complex supply chains that underpin it could soon be under threat. Analysts say the tech industry is the biggest potential prize in Washington’s attack on China’s exporting power and some suppliers are considering moving operations out of the country.

“The tariffs imposed so far cover about 10 per cent of all tech products.

But many companies are clearly bracing for more in case this escalates further,” said Randy Abrams, head of Taiwan research and head of regional semiconductors at Credit Suisse.

Wistron makes many of the servers sold by the tech groups Dell and HP. The motherboards that go into them

are manufactured in Zhongshan, China, and assembled in Mexico for sale in the US market. The company “will be greatly impacted by the new tariffs”, said Mark Li, an analyst at TrendForce, a technology research house in Taipei.

Quanta Computer, another large Taiwanese contract electronics manufacturer, could also be hit as some of its production is based in Shanghai.

Tariffs would drive up the cost of key components it uses in servers for Google and Facebook, and Mr Li said the company was considering moving some production back to Taiwan.

Chart showing countries that could benefit from the US-China trade war “There are signs of production moving out of China,” said Mr Abrams, adding that a move by Taiwanese electronics manufacturer Delta to acquire its networking subsidiary in Thailand was aimed at gaining flexibility to shift some production to the south-east Asian country.

Cable and connector maker Luxshare is setting up a production campus in Vietnam and evaluating a plan to set up facilities in India, while Samsung Appliances is shifting some operations to the US, according to Credit Suisse.

However, such moves are not easy to make. “It’s a real headache,” said the Wistron manager. The proximity to China, with its seemingly inexhaustible pool of cheap labour and huge market, lured Taiwanese downstream electronics manufacturers. “If we move back now, we have to invest big to remain competitive,” the manager said.

Analysts add that Taiwan would need to relax its labour migration rules if it wanted to bring some electronics production back home quickly, as the economy is close to full employment.

In Thailand, the labour market is also seen as too tight, and only Vietnam is thought capable of accommodating large shifts of production from China.

Gérald Darmanin, the French budget minister, and Bruno Le Maire, the economy minister © AFP

Regulation, Brexit and bad loans to dent banks’ profits 40% by 2022 Study by German banking consultancy Zeb predicts return on equity to deteriorate OLAF STORBECK

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ncreasing regulatory scrutiny, Brexit-related costs, rising bad loan provisions and low interest rates are poised to dent European banks’ profitability by 40 per cent over the next five years, according to a new study by German banking consultancy Zeb. Last year, Europe’s 50 largest banks eked out €118.8bn in post-tax profits between them, according to the study.

While that was more than twice as much as five years ago, the improvement was solely driven by a reduction in litigation costs, restructuring expenses and provisions for bad loans. Excluding those one-offs, the aggregate operating profit in 2017 was €3.5bn lower than in 2013.

The banks’ average return on equity stood at 7.1 per cent – higher than the 3.9 per cent earned a year earlier but nonetheless significantly below their cost of capital, which Zeb estimated was around 8.5 per

cent.

“Europe’s banks are still destroying capital,” said Florian Forst, a partner at Zeb. If the current trajectory were maintained, return on equity would deteriorate sharply, the consultancy warned, dropping to around 4.2 per cent by 2022.

“The banks’ efforts to cut costs has not been radical enough, as it could not compensate [for] falling revenue”, added Zeb partner Ekkehardt Bauer.

US stocks futures retreat amid oil and trade worries PAN KWAN YUK

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S stock futures were trading lower on Monday, coming under pressure as oil hit a 4-year high and the trade dispute between the Washington and Beijing remained lodged at the forefront of investors’ minds.

With less than two hours to go before trading starts, futures for the S&P 500 and the Dow Jones Industrial Average were both down 0.1 per cent while those for the Nasdaq 100 fell 0.5 per cent.

The moves lower suggest US stocks - which hit fresh record highs

last week - will open in the red. They come as Brent crude prices jumped to a fresh 4-year high. They touched almost $81 a barrel early on Monday after the world’s major producers, led by Saudi Arabia, decided against further output increases.

Traders were also taking a cautious stance amid a sharp escalation in US-Sino tensions after China rejected US calls for trade talks over the weekend. The new 10 per cent tariff on Chinese imports announced by Donald Trump last week takes effect on Monday. The move is expected to trigger counter tariffs from Beijing. Mr Trump has

threatened to retaliate with further duties on all Chinese exports to the US. Monday is also shaping up to be a busy day for deals. Ahead of the bell, SiriusXM said it would buy Pandora in an all-stock deal worth about $3.5bn while Michael Kors is set to acquire Milanese fashion house Versace in a deal worth about $2bn.

In economic data, the Chicago Fed National Activity Index – which provides a snapshot of the US economy – is due out at 8.30am EST while the Dallas manufacturing survey is scheduled to be released at 10.30am EST.

Gender equality key sustenance factor of the banking sector

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he Nigeria Sustainability Banking Principle, in celebration of its fifth anniversary, recently organised an interactive session with top players in the banking and financial sectors discussing issues bordering on gender equality and its effects on the industry.

The session themed ‘Gender Equality in the Financial Service Sector’ was held at the Access Bank head office in Lagos recently.

Participants spearheaded conversations on the need for companies to adopt sustainable cultures that promote inclusiveness for both male and female employees.

Chizoba Mojekwu, the director, capacity building, Central Bank of Nigeria (CBN) urged participants, especially Human Resources (HR) professionals to be wary of prejudicial nuances in matters regarding recruitment or promotion of employees.

“The challenge often times is because we have a pre-conceived

notion about a certain sex and to what extent they can go, this then translates into how we treat them and the opportunities we present them with. Women must aspire to be at their best if given the opportunity to make their aspirations a reality,” said Mojekwu.

Ibukun Awosika, the chairman of First Bank Nigeria Plc, said there is a need to increase efforts towards promoting gender equality as it is a vital factor in the quest for nation building.

According to her, the era of marginalization based on gender must be eradicated and every employee, male and female must be given a fair chance to prove their worth without unnecessary considerations of their sex. “The pursuit of inclusiveness should concern every one of us because it would not matter how hard men work; we will never achieve goals if we keep the women down,” said Awosika.

Herbert Wigwe, Access Bank

group managing director, said “Women add much value to any organisation as much as their male counterparts and truly deserve to be on platforms that enable them perform at their best in an all-inclusive and accommodating environment.”

The session also featured a panel discussion involving cofounder, Red Media Africa, Adebola Williams; CEO, TruContact, Ken Egbas; managing consultant, Irene Wright, Foluke Aboderin; and Chizoba Mojekwu, with executive director of CSR-In-Action, Bekeme Masade as moderator.

Also present were the coordinator, corporate responsibility and sustainability at First Bank Nigeria Plc., Obianuju Anakwue-Akanbi; head, sustainability, Access Bank Plc., Omobolanle Victor-Laniyan; group head of human resources, Access Bank, Bolaji Agbede; and group divisional head, corporate services, FCMB, Felicia Obazuwa amongst others.

Politics & Policy

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PDP, Saraki negotiate with Omisore over delivery of 3,498 votes required to win Osun re-run poll ... Omisore lists condition for APC, PDP BOLADALE BAMIGBOLA, Osogbo

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head of the governorship re-run election slated for Thursday in seven polling units in Osun state, the People’s Democratic Party (PDP) whose candidate polled the highest number of votes in the inconclusive governorship poll held across 30 local government areas of the state on Saturday, has begun frantic political moves to woo Iyiola Omisore and Social Democratic Party (SDP) which came third.

Recall that Saturday governorship poll in Osun state was declared inconclusive by Independent National Electoral Commission (INEC), claiming that cancelled votes of 3,498 which occurred in seven polling units located in Osogbo, Orolu, Ife North and Ife South local government areas as a result of the irregularities were more than 353 votes, a victory margin between PDP’s result of 254,698 votes and All Progressives Congress APC’S result of 254,345 votes.

Consequently, the People’s Democratic Party (PDP) as well as one of its presidential aspirants, Bukola Saraki, who is also the Senate President, has come to meet with Iyiola Omisore of SDP and his people in Ife North and Ife South

Bukola Saraki, senate president (5th left); Iyiola Omisore, SDP governorship candidate in Saturday Osun state poll (4th left); Doyin Okupe, director general of Saraki’s Presidential Campaign Organisation (right) and other Saraki’s campaign team during a negotiation visit to Ile-Ife, country home of Omisore on Monday.

Pic by Razaq Ayinla

local government areas, canvassing for votes that will make Ademola Adeleke, governorship candidate of PDP defeat the first runner-up, Gboyega Oyetola of APC in the rerun election.

Besides, the father of Omisore, who came third with 128,049 votes in the Saturday election, Oba David Omisore, is one of influential monarchs in Osun state and ruler of Garage Olode, a town in Ife South, where election in two units were

cancelled. This, however prompted the PDP and the Senate President to come Speaking after the meeting with Omisore, the Senate President, Bukola Saraki, declared that the People’s Democratic Party (PDP), had agreed in principle with Omisore conditions to get his support for the rerun election.

Saraki, who spoke in Ile Ife country home of Omisore after meeting the former federal lawmaker,

2019: We’ll free Lagosians from Tinubu, APC’s grip, says ADP INIOBONG IWOK

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he Action Democratic Party (ADP) Lagos State chapter, has said that it would free Lagosians from the grip of the ruling All Progressives Congress (APC) and its national leader, Senator Bola Ahmed Tinubu.

The ADP said that they are seriously disturbed by the unfavourable conditions of Lagosians and Nigerians in general, who have continued to wallow in abject poverty due to lack of social amenities, enabling business environment which had made many of them not to benefit from the dividend of democracy but were heavily taxed.

The party in a statement issued on Saturday by its State Publicity Secretary, Prince Adelaja Adeoye, wondered why Lagos, whose internally generated revenue yearly, was about

N500billion yearly cannot provide clean potable water for residents, but instead charges levies on residence with bore holes in their homes providing water for themselves.

The statement said that it was sad that Lagos had continued to make international news in bad light, wondering why the APC-led government would continue to brag about Lagos being a mega city when major roads, public schools and public infrastructures were in state of coma.

The party further accused former governor of the State, Senator Bola Ahmed Tinubu, of slowing down the progress of the state by commercialising and politicising the state for personal gains, stressing that Tinubu’s continuous imposition of candidates for elective positions in the state was to cover up the fraud the party had perpetuated in the state since 1999.

“What is happening now is that

if the state is not called the dirtiest slum, it is called most stressful state for workers in Africa. This is as a result of inadequate amenities to support workers in the state.

“Why the APC-led government continues to brag about Lagos being a mega city when major roads, public schools and public infrastructures in the state are in comatose. Despite the yearly allocations of billions of Naira for roads and other infrastructural developments, most of the outer and inner roads in the state are eye sore, impassable, with inferior construction for the few ones done”.

The party will work harder to present credible individuals with required leadership skill set, focusing on competence, capacity and character, whose aim will be to provide good services and purposeful leadership to all Lagosians in its forthcoming primary elections ahead of the 2019 elections.

expressed optimism of a good outing for to the PDP, but said that the Independent National Electoral Commission (INEC) failed to get his full commendations because Osun poll was declared inconclusive.

He said: “We had a fruitful discussion with Senator Omisore.

He used to be with us. And we believe he is helping us now. I am optimistic of a good outing for PDP. After meeting with hm, I am

more optimistic now that with his support, PDP will win. We are confident of a good outing. I am more confident now.

“I was hard on INEC because it declared Osun poll inconclusive after doing a good job. The issue of vote-buying was at the front burner but that was reduced to the bearest minimum as against what we witnessed during Ekiti poll.

“At the end of the day, the poll was again declared inclusive. That like take away all commendations that should have gone the way of INEC.” Meanwhile, Senator Omisore has declared that which ever party is ready to implement his programmes as SDP candidate, would have his support during Thursday’s poll.

He spoke after a close door meeting with Senate President, Bukola Saraki in Ile Ife. Omisore said: “I have given my programmes to both APC and PDP. My programme is like this; payment of salaries and pensions.

Good governance is what is important to me.

“Anyone between the two that will do that will get my support. I am passionate about Osun and my interest is the welfare of the people of this state. I have told those sent to me. At the appropriate time, we will tell you where we are going.”

2019: Saraki completes PDP presidential screening head of the primaries of the main opposition People’s Democratic Pa r t y (PDP ), S enate President, Bukola Saraki, yesterday completed the Presidential screening exercise of the party.

Saraki stated this in a message in his twitter handle after leaving the party secretariat ; Ahead of the Presidential Primaries of our great party @OfficialPDPNig, I have just concluded my screening at Legacy House, Abuja.

Saraki who was a former governor of Kwara State, between 2013 -2017, is among several high profile politicians eyeing the PDP Presidential ticket.

Notable among them are former Vice President of the country, Atiku Abubakar; former governor of Kano State, Rabiu Kwankwaso

, former Senate President, David Mark and incumbent governor of Sokoto State, Aminu Tambuwal.

Speaking during a consultation meeting with leaders and delegates of the Lagos chapter of the party last week, Saraki promised to restructure the country, but warned that restructuring of the country was a gradual process.

“I would restructure the country, I have the capacity to do that, but in doing this you need someone who understand the system, don’t mind those promising instant restructuring; restructuring cannot just happen without the appropriate laws being changed, Saraki said.

Saraki recently defected from the ruling All Progressives Congress (APC) to the PDP, after having a running battle with APC leaders, following his controversially emergence as the Senate President.

ling issues arising from the last congresses of the party which he described as fraudulent.

He asserted that the party will correct the mistakes of the past and confront the opposition come 2019. He stated this while addressing members of the screening committee of the party.

“In many of the states we had

challenges arising from the way congresses were conducted, many of them were quite fraudulent, that has been the challenge we have been trying to resolve since we came. Screening of aspirants is not a formality, that is why we tried to search for men and women of integrity who cannot be compromised.

INIOBONG IWOK

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2019: APC refuses to field selfish politicians as candidates JAMES KWEN, Abuja

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he ruling All Progressives Congress (APC)has vowed not to field politicians with selfish interests as candidates in the 2019 general elections.

National Chairman of the party, Comrade Adams Oshiomhole who gave this indication also declared

that the party will not field candidates he described as opportunists, who are seeking to use the platform of the party to achieve their selfish interest.

Oshiomhole who was referring to the defection of the senate President Bukola Saraki and Speaker of the House of Representatives, Yakubu Dogara to the Peoples

Democratic Party (PDP), said the party had learnt from the mistake of the past where people he described as bread and butter politicians were given tickets of the party.

Simon Ebegbulem, Chief Press Secretary to the APC National Chairman quoted Oshiomhole as lamenting that since assumption of office the NWC had been tack-

BUSINESS DAY

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NEWS YOU CAN TRUST I TUESDAY 25 SEPTEMBER 2018

INSIGHT/INNOVATION The herdsmen crisis: A review

OGHO OKITI Dr. Okiti is the president, Time Economics Ltd @ Dr_Okiti 081.7153.0058

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hankfully, the most vicious of herdsmen and farmers clashes in the North Central that dominated the media space in the last year has subsided. Now is the time to do a review, and understand the scale of the crisis, and why it is important to note that a country the size of Nigeria, or any country for that matter cannot make progress economically, politically, and grow the citizens income if we continue to leap from one crisis to the other.

The first thing to note is that the recent wave of clashes between herdsmen and farmers in recent years is simply an escalation. Intermittent clashes between farmers and herdsmenthat have led to loss of lives and properties have occurred since independence. However, due to pressures from climate change and population growth, which have increased competition for resources in the Sahel region, the situation has escalated in recent years. It has also been made worse and complicated by armed militias and Boko Haram.

According to the Armed Conflict Location and Event Data Project there were 1024 deaths attributable to such clashes from 1997 to 2011. However, since 2012, these numbers have skyrocketed, with 5977 deaths from 2012 to 2018.

PROPHYLAXIS

AYULI JEMIDE Ayuli Jemide is Founder and Lead Partner of Detail Commercial Solicitors. An entrepreneur, public speaker, author and adjunct faculty, Lagos Business School. Email: AJ@ ayulijemide.org Twitter: @JemideAyuli

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f you google “regulating the regulators,” it comes up with 38.4 million results. This is symptomatic of the fact that this is a popular phrase all over the world. Surely companies around the world are suffering from dog bites and scratches from regulators who are like wild Alsatians left to wander outside their kernel.

So, a key question is who has a leash on them?

The fact that the dogs are out in Nigeria is glaring. We have seen the Nigerian Electricity Regulatory Commission reduce the price of electricity just before elections. We have seen one gentleman turn the Financial Reporting Council of Nigeria into a gestapo type institution – chasing churches, mosques and sundry for game. We have heard of the erstwhile Director General of the Securities and Exchange Commission allegedly approve monies for himself

After a decline from the previous highpoint in 2014, the number of deaths has spiked again this year, with more deaths in just the first seven months of 2018 than in 2016 and 2017 combined.

Also, the recent crisis has become infused with religious and tribal sentiments, which have polarised the nation. While the long-time clashes have occurred in a minimum of 18 states of the Federation, the recent escalation has largely been confined to the North-Central region, with Benue bearing the heavy brunt of the attacks.The six North-Central states (Benue, Kogi, Kwara, Nasarawa, Niger, and Plateau) and the FCT account for 66% of the total killings since 2012 with the adjoining states of Taraba and Kaduna accounting for a further 88%.

The concentration of this recent crisis in the Middle Belt and states close to them (Taraba and Kaduna) with large Christian populations and of diverse ethnic groups has furthered the perception that the killings have ethnic and religious motivations. Furthermore, the lethargic response of President Muhammadu Buhari’s administration to the crisis, interpreted by many as complicit indulgence, has worsened this perception, given that President Buhari is from the same Fulani ethnic group as the herdsmen.

In relation to economic implications and a growing pattern of economic collapses in Nigeria, there is concrete risk to the nation that the herdsmen crisis can follow the destructive patterns of the Niger Delta militancy and the Boko Haram terrorism. Both of these crises have precipitated the collapse of growth in their respective regions and the potency of the recent herdsmen crisis has the potential to create a similar collapse in the North Central.

The militancy chased off the oil companies from the South-South. The headquarters of these companies, along with their corporate spending and the incomes of their staff that fuelled the erstwhile booming local economies of the SouthSouth cities have all been transported to Lagos.

While Lagos has multiplied its growth over the years, the South-South cities, which were once competing centres of serious economic activity, have retrogressed to near stagnation. In the same vein, since 2011, the North-East is only recognisable

there is concrete risk to the nation that the herdsmen crisis can follow the destructive patterns of the Niger Delta militancy and the Boko Haram terrorism. Both of these crises have precipitated the collapse of growth in their respective regions and the potency of the recent herdsmen crisis has the potential to create a similar collapse in the North Central for the destruction that BokoHaram had visited on it. Although it has historically been the least developed region and the lowest contributor to growth, those in the region have sunk further into poverty and destitution after the Boko Haram crisis.

Both regions are of the remotest reckoning in private considerations and public discourses of activities leading to Nigeria’s economic growth.

Local and international investors, both new and existing, avert entertaining the thought of going to either the region of a terrorist group that could bomb the UN office in its country or that of a gang of brigands where they could be kidnapped and killed. Since the militancy, the South-South has hardly accounted for anything economically outstanding other than continuous extraction of crude oil while the North-East has achieved a zero-share in the market size determination for Nigerian investments and constitutes a negative drag on the upward potential of the Nigerian market size and economic growth relative to population.

With unyielding characterization of South-South’s instituted brigandage and North-East’s terrorism, growth in both regions has effectively collapsed.

In the cases of the two regions, the government of the day had prevaricated on an early termination of the problem and unwittingly allowed the problems to fester into gigantic monsters. The late solutions could not restore the damages.

The amnesty could neither fully rehabilitate the wasted years of the youth nor could it restore

the opportunities and growth the South-South had lost. The North-East version of the amnesty could neither redeem the warped justification of the crude, inhuman and criminal rampage by the Boko Haram nor could it reinstate the lives killed, the villages and properties destroyed and the entire economic activities extinguished.

There is a clear risk of the herdsmen crisis taking the same path. It has already passed the early stage as the government continues to delay, pussy-foot and buck-pass as before.

The six states that make up the North-Central account for approximately 12.3% of Nigeria’s GDP, roughly in proportion with their share of the nation’s population. Owing to the large amount of fertile land in the area and its favourable weather, the region has remarkable potential for growth, particularly in the agricultural sector, if the rightpolicies are implemented. The government’s renewed emphasis on agriculture since 2015 has availed it the opportunity to explore that potential convincingly. Currently, the region accounts for 40% of the nation’s agricultural exports.

Given that the crisis has resulted in the destruction of farms and killing of farmers, agricultural production in the region will decline from its 2017 level this year. Further delays in determinately solving the herdsmen crisis will scare away all existing and planned investments in the region and portend the same danger of an eventual collapse of the economy of the North-Central region (as with North-East and South-South).

Such imminent collapse of growth in the North-Central region has a wider implication for Nigeria. It would bring the number of nonfunctional regions of the country to three. It will ensnare the region with the characterisation of “a killing field” that would take decades to wear off just as the North-East and South-South have permanently been with terrorism and militancy respectively. Even if the government later solves this problem, the perception of the Middle Belt as a volatile region will be hard to shake off. That is the food for thought ahead of the 2019 elections and the coming decades.

I thank you.

Who regulates the regulators? and by himself.We have more recently seen the Central Bank of Nigeria (CBN) deploy a serving Deputy Governor of the CBN to act as the board Chairman of Etisalat (a private telecoms company not under CBN’s purview) because of bad debts owed to commercial banks, and further participating in rebranding the company to 9mobile and selling down to investors.

We have recently seen MTN buckle under the Nigerian Communications Commission $5.2 billion fine. Again recently, CBN has made a pronouncement that MTN should “refund” $8.1 billion. One wonders about the legal and practical plausibility of such an order.Does CBN have the power to fine a privately held non-bank institution like MTN? Can private money not drawn from the CBN be refunded? How can MTN refund monies that may have been distributed to shareholders and lenders? Is CBN not conflicted given that the CBN midwifed the rebranding and sale of MTN’s competitor Telco (Etisalat, now 9mobile)? Does the Central Bank regulate Telecoms companies?

Regulators are really having a field day with executive recklessness and commandeering activities in Nigeria today. Who checks them when they draft regulations that give them powers outside the ambit of the enabling legislations? Who checks them when they make

Regulators are really having a field day with executive recklessness and commandeering activities in Nigeria today. Who checks them when they draft regulations that give them powers outside the ambit of the enabling legislations?

pronouncements that are clearly outside their powers and purview? Who checks them when the helmsmen or some of the officers have a conflict of interest?

Shall we continue to recoil under a crop of brigadiers whose questionable exercise of discretion and value judgments put the corporate citizens in a quandary and the nation into disrepute?An indiscriminate exercise of discretion is akin to a patient under the scalpel of a quack surgeon. I recall that several years ago, a certain important law had just been passed in a key sector in Nigeria. Months after, I had a meeting with the Director General of this very important new regulatory agency and I asked him when he planned to draft regulations typically made pursuant to the enabling law to guide stakeholders and streamline processes. (Please hold your breath!) This gentleman with a smile on his face said to me “I am not in a hurry to draft regulations because that will whittle down my discretion. For as long as we don’t have regulations whatever I say is the regulation.”How do we deal with these kinds of despots that have found themselves in positions of public trust yet cannot be trusted for a fraction of a mile?

These issues raise fundamental questions: Are regulators conflicted by being empowered to draft their rules of engagement with the citizens who they regulate? Should the legislators change the current method of drafting laws that empowers the regulator to draft their own regulations to a system where the law is passed together with the regulations? Should our laws become more prescriptive and insist that regulators should achieve certain tasks within given periods?

Should laws set specific defaults and set a process where a regulator must serve default notices and set a time for defaults to be remedied? Can we reduce politicization of decisions

by enacting a law that bans full time politicians from being at the helm of affairs or on the boards of any regulatory institution? Should our laws impose a statutory duty of care on boards of regulators, such that if they take deleterious decisions they may be held personally liable?

Why should we not repeal laws that protect public officers from personal liability for actions taken in their official capacity? Are such laws not a license to throw caution to the wind? Should we institute a code of conduct for boards of regulators that holds them to standards that are enforceable? Should regulators not be exposed to greater public scrutiny and be legally obliged to publish the basis and rationale for major decisions? Should we establish an Ombudsman (an official appointed to investigate complaints against maladministration of public authorities) that is equipped to deal with the shenanigans of regulators and penalize erring officials who take“amazing”decisions? Should we set up specialized fast track tribunals that deal solely with reviewing administrative action and the exercise of discretion by regulators? Do we realize that most regulators are judges in their own cause because they decide if there is an infringement and then they decide the penalty for such infringement? Perhaps we should have a system where a regulator investigates a matter and passes its findings to an Ombudsman to review and decide if thereis an infringement and if so suggest the appropriate penalties. Many regulations are so obsolete and archaic that perhaps major regulations should have sunset clausesthat make the regulations expire after, say, ten years so it can goback for fresh stakeholder engagement and legislativereview.

Indeed, I have asked just so many questions!

Permit me to ask just one more: When so many questions are asked, is it a symptom that somethings are wrong?

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